House of Representatives yesterday passed a resolution recommending a bail out for the Nigeria Telecommunications Limited (NITEL) and the Mobile Telecommunications Company (MTel) by the Central Bank of Nigeria (CBN) instead of commercialising or privatising the said companies.
The issue of commercialisation or privatisations of the companies has lingered for more than a decade.
The House took the decision based on a report presented in plenary yesterday by its Committees on Privatisation and Commercialisation, Finance, Communications, Public Procurement and Information Technology by Khadijat Bukar Abba Ibrahim, chairman of the privatisation committee.
The House approved a recommendation of the committee that instead of selling NITEL and MTEL, the CBN should give it a lifeline with the recommendation of the National Council on Privatisation that is refundable in five years.
“The National Council on Privatisation (NCP) should recommend to the Federal Government to include Nigeria Telecommunications Limited (NITEL) and the Mobile Telecommunications Limited (MTEL) in Central Bank of Nigeria (CBN’s) bailout intervention fund with a total sum equivalent to $1 billion to be refunded with interest over a period of five years,” the House resolved.
The House also recommended that the; “National Council on Privatisation (NCP) should immediately direct the Bureau for Public Enterprise (BPE) to stop the on-going process of liquidation of Nigeria Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL) under the circumstances.”
The House recommended; “That the National Council on Privatisation (NCP) direct Nigeria Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL) to commence the process of conducting technical and financial audit of the two companies as approved by the board.
“That the National Council on Privatisation (NCP) should direct their records office to eliminate the existing over N170 billion variance under the supervision of the office of the Auditor-General of the Federation.”
Besides, the House also recommended; “That the National Council on Privatisation (NCP) should direct the Bureau for Public Enterprise (BPE) to comply with Federal High Court judgements in favour of the 3000 ex-staff of Nigeria Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL) treated as casuals and the other one in favour of Nigeria Telecommunications Limited (NITEL) arid ‘Mobile’ Telecommunications Limited (MTEL) pensioners.”
And “That the National Council on Privatisation (NCP) should consider the proposal for revamping the companies while the privatisation process is as submitted by the ex-staff, consultants and others as an alternative to outright liquidation of Nigeria Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (MTEL).”
The House also directed that; “The National Council on Privatisation (NCP) should consider Public Private Partnership (PPP) as a privatisation strategy of the companies and maintain the national carrier status for security reasons.”
It also directed “That the Federal Government should direct the Ministry of Finance to comply with the agreement between the Nigeria Telecommunications Limited (NITEL) and the Ministries, Departments and Agencies (MDAs) to deduct from source the reconciled N6.2 billion and remit to Nigeria Telecommunications Limited (NITEL) for immediate settlement of outstanding staff salary arrears/other fringe benefits and resuscitation of the company.”
Other recommendations directed that benefits of NITEL workers be duly paid with the Presidency’s intervention.
“The Federal Government should plead with the state governors to reconcile the N4billion NITEL debt and pay accordingly and that the Federal Government should direct Nigerian Communication Commission (NCC) and Nigeria Telecommunications Limited (NITEL) management to determine the fees due to the new regime from single to double tandem that was unfair to Nigeria Telecommunications Limited (NITEL),” the report stated.