From all indications, the Etisalat saga is not near over yet, as the Nigerian Senate today passed a motion on the need for intervention in the telecoms firm recent $1.2 billion debt crisis.
In its resolution, the Senate said it has mandated several committees to investigate the management and utilization of the $1.2 billion loan facility the telecom firm obtained from a consortium of Nigerian Banks.
“Today, my colleagues and I in the Nigerian Senate intervened in the Etisalat Debt crisis in order to save 4000 jobs across the country,” Senate President Bukola Saraki said in a statement.
In 2013, Etisalat Nigeria acquired a syndicated loan from 13 banks as a medium-term, seven-year facility to fund the expansion of the network in Nigeria. Since then, the company has only repaid 42% of its loan.
While although the company has since metamorphosed into 9mobile, the issues surrounding the management and utilization of the $1.2 billion loan facility seem to still linger.
The Senate observed it should not ordinarily be the duty of the Senate of the Federal Republic of Nigeria to wade into the individual debt crisis of private sector businesses but for the sake of jobs at stake, it has to.
“We are convinced that if this situation is not properly handled, it will have negative implications for the Nigerian Business Environment and on Foreign Investment in Nigeria in general,” Saraki said.
The Senate stated that because 4000 Nigerian jobs are at stake if the situation is not rectified, it has mandated the committee on banking, communications, capital market and national security and intelligence to investigate the management and utilization of the $1.2billion loan facility obtained from the 13 Nigerian Banks.
The Senate said the Joint Committee in its report is expected to make recommendation on way the Nigerian Financial Governance Structure can be strengthened by legislations to prevent any similar reoccurrences in the future.
The highest policymaking body in the country also directed relevant Financial Intelligence Agencies of the Federal Government to investigate the management of Etisalat Nigeria and hold the defaulting parties accountable for their actions.
“We must first and foremost, always do all that we can to protect the jobs of our people,” the Senate President stated.
“On the issue of investment planning and corporate governance, we must also look at preventing these kinds of issues.
“It is my hope that this committee will come up with a framework that will help us address issues like this in the future,” he further stated.