A Nigerian investment consortium, NATCOM Telecommunication, has emerged the preferred bidder for the assets of the Nigerian Telecommunication PLC (NITEL) and Nigerian Mobile Telecommunication (MTEL). Both companies are set to be sold for a combined fee of $252 million.

“The privatisation of NITEL and MTEL is the final step in the reform of the telecoms sector,” Nigeria’s Minister of Communications Technology, Mrs Omobola Johnson, said at the bidding event.

NATCOM had its initial $221 million bid rejected by the Nigerian government, before a reviewed offer of $252 million was accepted.

Failed privatization attempts 

Nigeria decided to liquidate NITEL and MTEL in March this year after attempts to privatize the companies proved unsuccessful.

Attempts at privatizing NITEL goes as far back as 2001 when it was first put up for sale. Ms International London Limited (ILL) emerged the preferred bidder at the time, agreeing a $1.317 billion fee but failed to meet the payment deadline.

In 2003, Pentascope of Netherlands was contracted by the federal government to manage and reposition NITEL for another round of privatization process which also failed.

2006 saw a fresh acquisition attempt by Transcorp. The indigenous consortium lodged a $500 million bid-winning offer but failed to fulfil its financial obligation thereafter.

In February 2010, New Generation Consortium, made up of Nigeria’s GiCell Wireless Limited, China Unicom of Hong Kong and Minerva Group of Dubai tried to secure a $2.5 billion acquisition deal. This, like others, failed to materialize.

Renewed assurance?

Omobola Johnson, in a report carried by THISDAY, has assured Nigerians that the government will continue to review and fine-tune policies that spur a progressive environment for a developed private sector-driven telecommunication industry.