FG, Transcorp agree to hand over NITEL to new investor

Clement Idoko, Abuja - 04.03.2008

THE Federal Government and the Transnational Corporation of Nigeria (Transcorp) on Monday agreed on a new core investor to take over the management of both the Nigeria Telecommunications company (NITEL) and its mobile arm, M-tel.

The move, according to the Minister of Information and Communication, Mr. John Odey, is to reposition the two telecoms companies, not just as national assets, but also to enable them to provide robust services and the much needed backbone infrastructure for the country.

Odey made this known at a joint press briefing with the Group Managing Director and Chief Executive of Transcorp, Mr. Tom Iseghohi, in Abuja.

The Federal Government, two weeks ago, announced the revocation of the sale of NITEL and M-tel for lack of financial resources and expertise to manage the two telecoms companies.

A statement jointly signed by both Odey and Iseghohi at the end of the briefing read in part: “For the avoidance of doubt, we want to restate clearly that under the share purchase agreement, Federal Government has 49 per cent and Transcorp has 51 per cent shares in NITEL and M-tel.

“To facilitate additional funding and telecommunications expertise, the Federal Government and Transcorp have mutually agreed to bring new core investor who is an industry player, with the appropriate technical expertise, managerial experience and financial capability to reposition both NITEL and M-tel.

“These agreements were reached out of the need to continually inject funds, new ideas and technologies into the organisations in order to enhance service delivery and competitiveness in today’s telecoms business environment.

“Transcorp will continue to own 51 per cent and manage both organisations until a new core investor is identified. “We want to assure key stakeholders, especially investors and employees of NITEL and M-tel of our firm resolve to protect their interests and welfare as well as to revitalise both NITEL and M-tel and make both companies attractive to potential technical partners.

“The Federal Government and Transcorp will continue to work to pursue these objectives collectively in order to turn around the fortune of the companies.” Odey used the occasion to appeal to Nigerians to continue to give support to the government’s commitment to due process and the rule of law as well as ensuring an enabling environment for investment and economic growth, “a goal that takes centre stage and priority in the present administration.”