President Umaru Yar’Adua has approved the acquisition of 15 per cent stake in the Nigerian Telecommunications Limited and its mobile subsidiary, the Nigerian Mobile Telecommunications Limited by the Nigerian Communications Satellite Limited.
This followed the recommendations of the Presidential Committee set up by Yar’Adua to reconcile the position of the Nigerian Communications Commission and the quest of NigComSat to acquire a spectrum to offer last mile telecommunication services.
Impeccable Presidency sources confirmed to our correspondent in Abuja on Tuesday, that Yar’Adua also approved the reconstitution of the board of NigComSat to be chaired by a professional, who is knowledgeable in satellite operations.
The committee, chaired by Vice-President Goodluck Jonathan, was made up of top government officials including the ministers of Information and Communications and Science and Technology, Mr. John Odey and Mrs. Grace Ekpiwhre, respectively.
Others members include the Executive Vice-Chairman, Nigerian Communications Commission, Mr. Ernest Ndukwe; Managing Director, NigComSat Limited, Mr. Ahmed Rufai; and Director General, Bureau of Public Enterprises, Mrs. Irene Chigbue.
Approving the recommendations, Yar’Adua charged Jonathan, who also heads the National Council on Privatisation, to ensure immediate implementation of the decisions.
NITEL is currently up for sale to a new core investor following an agreement between the current core investor, Transnational Corporation, and the Federal Government.
By the agreement, the Federal Government will yield 24 per cent of its current 49 per cent holding, while Transcorp will yield 27 per cent of its current 51 per cent holding to make up 51 per cent equity to be acquired by a new core investor.
With the takeover of 15 per cent equity by NigComSat, the remaining nine per cent has been left to the workers of the company and First Bank of Nigeria Limited, which had lost about $100m it lent to Investors International (of London) Limited during its failed bid to acquire NITEL in 2002.
Some of the remaining nine per cent may also be taken to the Nigerian Stock Exchange by BPE as had been indicated by the privatisation agency in the past.
The acquisition of NITEL equity by NigComSat may finally put to rest the satellite company’s quest for 3G frequency spectrum and a Unified Access Service Licence. NCC had recently granted an International Data Service licence to the company.
A partnership between NITEL and NigComSat is seen in government circles as strategic because of the possibility of using NigComSat’s terrestrial link to make up for NITEL’s weak ground transmission infrastructure.
However, the running of the beleaguered telecommunication company will revolve on the yet-to-be-known core investor which is to acquire 51 per cent stake being yielded by the Federal Government and Transcorp.
If the NigComSat goes into NITEL, it may also shelve the proposal to incorporate a downstream subsidiary that would have been the vehicle for its proposed last mile services.
The downstream subsidiary was mooted when government shelved the idea of privatising NigComSat over security concerns.
In the reconstituted board of NigComSat, provision has been made for representatives of the Ministries of Finance, Information and Communications and Science and Technology as well as two other directors. A private sector person is to chair the board.
Source: The Punch
