Nitel: Another Privatization?

The privatization of Nigerian Telecommunications Limited (Nitel) has entered the history books as the most controversial laced with roadblocks.
At a point, it appeared the privatization of the telco was jinxed as internal and external factors combined to hobble efforts to remove government from business of managing the national operator.
In the last ten years, a handful of inept management, poor finances and visionless/inexperienced majority owners have at various times experimented reviving the ailing telco without success.
But New Generations Telecommunications Consortium last week acquired 75 per cent stake in the beleaguered Nitel’s raising hopes of possible end to the convoluted attempts to divest government holdings in the telco over the decade.
The Consortium, offered to pay about N350 billion ($2.3billion) for all the components of Nitel, including the mobile unit, M-Tel; the CDMA network; transmission backbone, the fixed line and SAT- 3.
Under the consortium are: GiCell Wireless Limited; China Unicom (Hong Kong) Limited and Minerva Group.
Shortly after its offer was accepted, Alhaji Abubakar Usman Gummi, coordinator of the consortium rose to allay fears of meeting the deadline for payment.
Recall that as far back as 2001, ILL Limited, a United Kingdom - based firm offered to pay $1.3 billion for the enterprise, but failed to meet up with payment schedules, leading to the termination of the deal.
The IILL deal claimed the position of Bernard Longe, the former managing director of First Bank Plc for alleged role in the sour deal with Nitel.
This led to a management deal with Pentascope which collapsed as quickly as it was penned because Netherlands Consultancy Company lacked managerial, technical and financial muscle to reverse the dwindling fortunes of Nitel.
Then, again in 2006, the lot fell on Transnational Corporation, (Transcorp) which offered to pay $750 million but ended up paying $500million for 51 percent of the national carrier.
Government however took back control June 2009 from Transcorp, citing a lack of investment and unpaid debts.
Over the years, attempts to sell Nitel have thrown up weird bazaar of varied assortment of groups and individuals bent on ripping off the telco’s prized assets, emptying its treasury and leaving it for dead.
It is hoped that the latest sale to the New Generations Telecommunications Consortium will end the tortuous and unsuccessful attempts in the past to sell the firm.
New Generation Telecommunications Consortium must also make efforts to source and pay the amount it offered.
The consortium must be mindful of events which led to the cancellation of the deal with ILL limited that offered to pay just $1.3 billion for the enterprise nine years ago.
After paying for its offer, the New Generation Telecommunications Consortium must initiate a road to recovery for the telco.