Telecom
Debt Crisis: Breather for Etisalat as CBN Halts Takeover
Central Bank of Nigeria (CBN) yesterday directed the consortium of 13 banks involved in Etisalat Nigeria’s $1.2 billion loan to suspend further action on the indebtedness, including taking over ownership or management of the company.
Also yesterday, the management of the telco blamed its inability to offset its $1.2b loan to the economic downturn witnessed in the country in 2015 and the sharp devaluations of the Naira.
Mr. Godwin Emefiele, CBN Governor, handed the directive when reportedly spoke chief executive officers of the banks that raised the loan for Etisalat
The CBN boss also asked the lenders to seek the apex bank on any move or measure they intend to take with respect to the Etisalat indebtedness.
Investigation also revealed that prior to the Governor’s intervention and directive to the banks’ CEOs had agreed to issue a joint statement to explain their position and objectives with respect to the $1.2 billion loan.
Elsewhere, the management of the embattled telecom company has blamed its inability to offset its $1.2b loan to the economic downturn witnessed in the country in 2015 and the sharp devaluations of the Naira.
In a statement issued on Thursday, Etisalat Nigeria said the sharp devaluations of the Naira negatively impacted on the dollar-denominated loan by driving up the value of the loan.
”The economic downturn of 2015 and sharp devaluations of the naira negatively impacted on the dollar-denominated loan by driving up the loan value, thus prompting Etisalat to request a loan restructuring from the consortium of banks,” the company stated.
Moreover, the company said it had paid almost half of the $1.2b loan before discussions with the banks regarding the repayment restructuring hit the rocks.
The company also disclosed that it was not being investigated by the Economic and Financial Crimes Commission (EFCC) as widely reported in the media.
It described the reports as patently false and most unfortunate.
Read the full statement below:
The attention of Etisalat Nigeria has been drawn to media reports that the management of Etisalat Nigeria is being investigated by the Economic and Financial Crimes Commission (EFCC), following a petition to “the Federal Government asking that Etisalat be investigated” on how the funds from the syndicated loans were utilized.
Etisalat wishes to categorically affirm for the avoidance of doubt that the reports are patently false and most unfortunate considering the damage such misleading information can have not only on our business, but indeed on the telecommunications industry and the country as a whole. A simple interrogation of the rigorous process for securing a syndicated loan from a consortium of reputable banks would have exposed the truth to the original writer of this story and other media channels who have subsequently re-circulated the falsehood without interrogation or verification.
Concerned parties have access to our books and do not require an investigation into how the loan sum was utilized. All of the infrastructure investment and services for which the loan was secured, were paid through our banks and these are verifiable.
It is indeed crucial for the media to correctly inform the general public by providing the needful macro-economic context around which the challenges we encountered with meeting up with the loan obligation occurred.
It would be recalled that the $1.2bn loan, a medium-term seven-year facility, was obtained by Etisalat Nigeria for the purpose of expanding its network and improving the quality of service on its network.
The economic downturn of 2015 and sharp devaluations of the naira negatively impacted on the dollar-denominated loan by driving up the loan value, thus prompting Etisalat to request a loan restructuring from the consortium of banks.
Contrary to the widely reported misrepresentations about Etisalat Nigeria’s debt obligation to the consortium of 13 banks, it has become pertinent to set the records straight. Prior to this time, Etisalat had in fact consistently and conscientiously met up with its payment obligations.
As at today, we can categorically state that the outstanding loan sum to the consortium stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars. This in essence means almost half of the original loan of $1.2bn, has been repaid.
Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced.
We hereby appeal to our media partners to continue to uphold the ethics of the profession by exercising some restraint particularly in the publication of such misleading and damaging information. We have been accessible and remain available to the media to clarify or verify information when required.
Telecom
WIOCC’s Strategic Role in Addressing Subsea Cable Outages
WIOCC, Africa’s digital backbone, is leading the continent’s response to the cable cuts currently affecting the WACS, ACE, Main One and SAT3 subsea systems on Africa’s western seaboard.
WIOCC’s highly resilient network, with hyperscale capacity on every major system is the largest in Africa and ideally placed to swiftly deliver restoration solutions to hyperscalers, fixed and mobile carriers, internet service providers and other clients, enabling them to quickly re-establish key traffic routes into, within and out of Africa, thereby minimising performance degradation for their end-customers.
According to Chris Wood, Group CEO of WIOCC, “Immediately the four subsea cables were severed off the coast of Cote d‘Ivoire our engineering, operations and field teams swung into action.
“They have been working tirelessly for the last 48 hours with our strategic network partners and equipment suppliers and will, within the next 24 hours, have activated an unprecedented additional 2 Terabits per second (Tbps) of capacity across the unaffected cables in our network to support the capacity needs of other network operators and hyperscalers.
“Our clients connected directly at Open Access Data Centres (OADC) data centres in South Africa and Nigeria are already protected from the impact of the subsea outages due to the unique levels of redundancy and scale of the WIOCC core backbone.
“In Lagos, the Equiano cable, in which WIOCC owns a fibre pair, has not been affected by the incident off Cote d‘Ivoire. WIOCC lands the cable directly into the OADC data centre, establishing the most resilient digital ecosystem hub in Lagos and offering the most direct connectivity to Europe and South Africa.
“As a result, OADC’s data centres and WIOCC’s hyperscale network are playing a key role in restoring services to other facilities and operators currently suffering outages in Lagos and elsewhere on the continent.”
“Our priority is to ensure minimal disruption and maximum resilience for our clients,” added Ryan Sher, Group Chief Operating Officer at WIOCC.
“We have invested heavily in deploying diverse, highly-scalable national and international connectivity to support the uptime requirements of our wholesale client base. Investing at scale means that we consistently carry extra capacity, ensuring we are able to rapidly turn up or re-route capacity to address unexpected network disruptions.
“It also enables us to deploy short-term restoration solutions for other operators on a case-by-case basis. Any service provider affected by these outages, whether an existing WIOCC client or not, is encouraged to contact us to explore options.”
WIOCC’s policy of strategic deployment of converged, open-access digital infrastructure at a hyperscale level and delivery of unrivalled resiliency, enables it to meet and anticipate the needs of Africa’s wholesale community with sufficient scale and network diversity to address even the most challenging situations.
Telecom
Voice, Data Services Affected by Undersea Cable Cuts Restored – NCC
Nigerian Communications Commission (NCC) has announced that the recent Undersea Cable Cuts that affected Voice, Data Services have now been restored.
The commission in a statement released on Monday and signed by Reuben Muoka, Director, Public Affairs, said that services have now been restored to approximately 90% of their peak utilization capacities.
According to him, “following the disruption on March 14, 2024, which affected data and voice services due to cuts in undersea fibre optics along the coasts of Cote d’Ivoire and Senegal, we are pleased to announce that services have now been restored to approximately 90% of their peak utilization capacities.
“All operators who were impacted by the cuts have taken recovery capacity from submarine cables which were not impacted by the cuts, and have thus recovered approximately 90% of their peak utilisation capacities.
“Mobile Network Operators have assured the Commission that data and voice services would operate optimally pending full repairs of the undersea cables as they have managed to activate alternative connectivities to bring back the situation to normalcy.
“We extend our appreciation to telecom consumers for their patience and understanding during the downtime caused by the undersea fibre cuts,” he concluded.
Telecom
IIM United Kingdom Inducts new Members, Highlights the Power of Intelligent Technologies
Institute of Information Management (IIM) United Kingdom successfully hosted its highly anticipated Annual Convention and 47th Induction/Investiture ceremony on March 9, 2024, at the Wesley London Euston.
The event, held under the theme “AI Renaissance: Unleashing the Power of Intelligent Technologies,” brought together distinguished professionals, thought leaders, and industry experts from various sectors.
The convention commenced with a thought-provoking Welcome Address and Keynote Speech delivered by Amb. (Dr) Oyedokun Ayodeji Oyewole FIIM, ERMS, RMEMS, FIRMS, the esteemed international President of the Institute of Information Management (IIM) Africa. His address set the tone for insightful discussions and collaborative engagements throughout the event.
Among the notable highlights was the Inauguration and Taking of Oath of Office by Acting Vice President of IIM United Kingdom Chapter, Prof. Rotimi Jaiyesimi, FIIM, who assumed the role in an acting capacity following his recent appointment by the IIM Africa Board.
A significant announcement was made during the convention regarding the launch of a single global annual Convention starting in 2025.
“This groundbreaking initiative”, according to Dr. Oyedokun Oyewole, president/chairman-Governing Council, Institute of Information Management (IIM) Africa, “will unite all IIM Africa Global Chapters for the Convention, induction, and investiture, streamlining the event into a singular, impactful gathering. The announcement, made by Aisha Dania Ogieriakhi, FIIM, Director of IIM United Kingdom Chapter, marks a new era of collaboration and cohesion within the IIM community”.
The convention attracted a diverse array of attendees, including dignitaries, traditional rulers, captains of industry, and professionals from various backgrounds. Notable guests included Chief Bimbo Roberts Folayan, FIIM – Former Chairman (2011-2015) Central Association of Nigeria in the United Kingdom (CANUK), Cllr. Sunny Lambe, FIIM – Southwark Labour and Cooperative Councilor, Michaelene Holder-March, FIIM – Managing Director of MHM Health Consultancy Ltd, His Highness Papa Paul Jones Eganda, FIIM – Founder and the President of AIDO Network International, Chief (Dr) Richmond Macgrey, FIIM – Representative & Public Relations Minister of His Royal Majesty, Ogiame Atuwatse III, (Olu of Warri) in the Diaspora and others.
Throughout the event, discussions revolved around key themes such as the transformative potential of artificial intelligence, the ethical implications of intelligent technologies, and the role of information management in shaping the future.
A highlight of the convention was the induction of new members into the Honorary Fellowship Grade and Professional Fellowship Grade, recognizing their exemplary contributions to the field of data and information management. Additionally, the collaboration between IIM and the International University of Information Management (IUIM) resulted in the conferment of Honorary Doctorate Degree Awards to deserving professionals and achievers in society, adding a prestigious dimension to the event.
Both sessions were anchored by the duo of Antoinette R. Okoye and Olufemi Ibiwoye, a fixed specialist at BT Enterprises PLC London, England, United Kingdom.
One memorable moment came from Julliet Makhapila, a Community Transformer, Changemaker, Innovator, and Social Impactor from the United Kingdom, who volunteered to extend the IIM Africa initiative to her home country of Kenya, further expanding the institute’s reach and impact.
The convention provided ample networking opportunities and special activities for attendees, fostering meaningful connections and collaborations among participants.
Co-hosted by IIM Africa and the International University of Information Management (IUIM), the 2024 Annual Convention epitomized the mission and goals of the Institute of Information Management, serving as a platform for knowledge sharing, professional development, data leadership development and overall community building leveraging on access to quality data for effective decision making in both public and private establishments.
As the convention concluded, the main takeaways included maintaining a vibrant community of professionals, sharing best practices, and nurturing collaborative efforts to advance the field of data and information management.
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