Transcorp and Nitel’s Fortune

With three failed attempts to privatise Nitel, the emergence of Transnational Corporation of Nigeria (Transcorp), as the new core investors with 51 percent in July 2006 raised hopes.

Months after, government is now accusing, Transcorp, the company hurriedly assembled by some Nigerians, of failure to turn around the fortunes of Nitel.

Transcorp, has however blamed undue interference by government, unpaid bills and poor internal control as some of the causative factors directly responsible for NItel’s woes.

Mr. Tom Iseghohi, group managing director (GMD) and chief executive officer (CEO) of Transcorp said that the view expressed in some quarters that Transcorp was being given a soft landing to create room for a new core investor that will hold 51 per cent stake, was not true after all. Rather, the issue of a new core investor was an idea conceived primarily to bail out Nitel.

But John Odey, minister of information and communication said that the decision to revoke license was in the best interest of both shareholders and the general public.

Nodding in agreement, Charles Amankwe, president of the National Association of Telecommunication Employees (NATE), said Transcorp failed Nitel in all ramifications and that Transcorp should be punished for wasting Nitel during these months.

It is however strange that the minister was quoted as describing Nitel as Dinosaur - an extinct prehistoric reptile often of enormous in size - being tossed right, left and centre by those whose responsibility it is to protect the giant reptile.

Is the minister agreeing that government is actually slowing down the turn around of Nitel, and if it is indeed true, why would the same government who is desirous of turning around the carrier, be laying landmines for Transcorp?

Also worrisome is news that some government officials intentionally blocked the signing of some deals that would help shore the fortunes of Nitel.

Aside the claims and counter charges, efforts should be made not to allow Nitel die because allowing Nitel die is like allowing the industry to die.

At least the last strike by worker of Nitel once again highlighted the importance of the national carrier in the scheme of things in the telecom industry.

An independent board of inquiry to identify the reasons for the alleged failure of Transcorp in Nitel should be set and all who were responsible should be punished.