The federal government is to restart attempt to wind down Nigerian Telecommunications Limited (NITEL)., the moribund national carrier and MTEL, it mobile subsidiary, after a court blocked its previous liquidation attempt a couple of weeks ago, Nigeria CommunicationsWeek can report
The federal government had opted for the liquidation of the carrier after various attempts to privatise the company or turn around its fortunes have stalled.
But a federal l High Court sitting in Port Harcourt, Rivers State, had granted an injunction stopping the liquidation of the Nigerian Telecommunications Limited.
Nigeria CommunicationsWeek gathered that feelers from the presidency however suggested a renewed political support for yet another attempt to rescue the ailing telecoms operator.
The Bureau of Public Enterprises (BPE) had middle of last year, said that over $3 billion (about N480 billion) liabilities of the ailing carrier remained the greatest constraint to the planned guided liquidation of the enterprise.
According to BPE, the state-owned telecom company’s liabilities far outweigh their current value.
A source at the Presidency told Nigeria CommunicationsWeek that “the federal government is really worried that NITEL and MTEL have continued to deteriorate. That is why the President has given his full support for effort to break the jinx”
It would be recalled that a federal High Court in Port Harcourt, had in January granted an injunction stopping the liquidation of NITEL.
Ruling on a suit with reference No FHC/Ph/S/471/2011 filed by Snytel IG Wills Communications Limited against the Nigeria Telecommunications Plc, Bureau of Public Enterprises, Ministry of Finance Incorporated (MOFI), National Council on Privatisation (NCP), Attorney-General of the Federation (AGF) and the federal government of Nigeria, Lambo Akanbi, who presided over the case directed all parties to maintain “ante bellcum” pending the determination of the case fixed for March 24, 2014.
Francis Enyong, counsel to the plaintiff, had earlier informed the court that while the suit was pending, the defendants had filed a residing suit for the liquidation of NITEL in an Abuja High Court.
The judge, however, frowned at the actions of the defendants, who were all present in court and mandated them to maintain the status quo, pending the determination of the existing suit on March 24, 2014.
The plaintiff had dragged the federal government to court over plans to liquidate NITEL.
The NITEL privatization imbroglio has lingered for more than a decade and one time the House of Representatives recommended that the Central Bank of Nigeria (CBN) bailout the beleaguered carrier.
The privatisation process started in 2001, when the Investors International London Limited (ILL) bid to acquire the company but defaulted in paying the bid price of $1.317 billion.
In 2003, Pentascope of Netherlands was appointed as management contractors to revamp the company for another privatisation process.
But this was marred by scandalous revelations that led to cancellation of the contract.
In 2006, Transcorp won a bid to acquire the company for $500 million but they also failed to pay.
In February 2010, New Generation emerged the preferred bidder with an offer price of $2.5 billion in yet another attempt. But this preferred bidder also failed to pay even after it got several deadline extensions.
Additional report from Cellular-news