Nigerian panel to scrutinize NITEL privatization debacle

Controversy surrounding the bidding process for state-owned operator NITEL, has lead to Nigeria’s National Council on Privatization setting up a panel to further investigate the bidders involved in the privatization deal.

According to Total Telecom, the seven-member panel will look into five bidders namely- the New Generation Telecommunications Consortium which offered the highest bid at $2.5 billion, Brymedia Consortium which offered $551 million for Nitel, MTN Nigeria Communications Ltd., which offered $25 million for SAT-3; AFZI/Spectrum Consortium, which bid $375.5 million; and Omen International that offered $956 million.

On February 16, the Bureau for Public Enterprises announced that New Generations Telecommunications Consortium, comprising GiCell Wireless Limited, China Unicom (Hong Kong) Ltd. and Minerva Group had offered $2.5 billion bid for a 75% stake in NITEL and its M-TEL unit.

The controversy began when Unicom Hong Kong denied its involvement in the bidding process, saying it was not part of the Consortium. This followed with China Unicom’s office in Europe admitting their interest in the proposed sale.

The investigation panel includes chairman and Nigerian Attorney General Adetokunbo Kayode, Minister of Finance Mansur Muktar, Minister of State for Commerce and Industry Humphrey Abah, acting BPE Director General Bolanle Onagoruwa and others.

The committee’s final decision is expected to be reported to the privatization council in seven days.