NCC warns banks’ as last fight for the soul of Etisalat rages, assures subscribers
In a terse statement issued on Tuesday evening by the Nigerian Communications Commission (NCC), the agency said its attention has been drawn to a planned takeover of Etisalat by a consortium of banks.
The statement signed by the Director of Public Affairs, Mr. Tony Ojobo made it clear, however that “The Commission is aware of the indebtedness of Etisalat to the consortium of banks; In conjunction with the Central Bank of Nigeria (CBN), it mediated by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a resolution; and Regrettably these meetings did not yield the desired results.
NCC was quick to assure the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator.
However, banking experts in loans and related obligations say terms and conditions signed between parties to a deal remain sacrosanct in the event of hostile acquisitions caused by observed default after all, meaning that the federal agency may not do much in this matter.
The Commission noted that “it has taken proactive steps to cushion the impact of the takeover, this is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement”.
“In view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.
“Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38:
“Sub section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;
“Sub section 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.
Whilst the banks and Etisalat are working at resolving the issues, the Commission wishes to assure subscribers that they will continue to enjoy the services provided by Etisalat,” Ojobo added.
