When New Generation Telecom Consortium Limited won the bid to acquire 75 per cent in the Nigerian Telecommunications Limited (Nitel) in mid February, some Nigerians heaved a sigh of relief.
To many, it was an end to almost 10 years of tortuous failed attempts to privatize the national carrier.
But as New Generation Telecom Consortium was about to click glasses to celebrate, a few power brokers felt that the $2.5 billion the consortium tabled for the carrier was worrisome. They allegedly wanted the consortium to throw the deal so that Nitel could be acquired at next to nothing.
This group was drinking pain relievers on behalf of the consortium which ought to know the nature of the national carrier before they entered the bid.
New Generation Telecom Consortium is said to have the backing of Minerva Group, Dubai, its principal financier, eager to establish footprint in Nigeria’s lucrative telecom market.
Minerva has declared their willingness to finance the reentry of Nitel into the market with as much as $2 billion in the first instance as well as pay the bid price.
All that is now threatened by the controversies that started just a day after the bid when China Unicom, a member of the Consortium; denied any involvement in the deal. The company had been listed as the technical partner.
It was to later clarify that its European subsidiary had offered technical partnership to the consortium on terms that were yet to be agreed on.
That having being settled, the federal government influenced by some powerful interests sent Dr. Christopher Anyanwu, director general of the Bureau of Public Enterprises (BPE) on suspension alleged insubordination and overstepping his boundaries.
Not even insistence by Professor Taiwo Osipitan, acting chairman of the Technical Committee of the National Council on Privatization, (NCP) that the transaction was faultless could dissuade the already fixated group bent on canceling the deal.
But as the claims and counter charges rages, Nitel continues to drift into nothingness.
Also drifting is Nigeria’s chance to attract further foreign direct investment as well as thousands of jobs that could be crated in the medium to long term.
The ripple effect of reentry of Nitel into the market could be far reaching from media houses to advertising, to industries to even househould.
The reentry of Nitel would also stimulate increased competition where operators battle for the soul of the consumer with superior services.
Government must not contemplate canceling the bid because it will throw the government into the crisis of looking for funds to offset Nitel’s liabilities put as some $1.7 billion when somebody has offered $2. 5billion.
Nigeria must toe the line of wise countries which attract foreign direct investment (FDI) because of its acknowledged advantages as a too
