NITEL: NATCOM pays up $252.2m … FG approves handover

ITRealms

The Federal Government may have concluded plans to handover NITEL/MTEL facilities to NATCOM consortium having met the necessary requirements including full payment of $252.251million cost of acquisition repor, according to the deputy chairman, National Council on Privatization Technical Committee Mr.  Haruna Sambo, ITRealms reports.

Mr. Sambo disclosed this at the last meeting of his committee for this administration, saying that NCP has approved the handover following the financial bid for NITEL/MTEL by the bidder, NATCOM consortium.

‘Today, at the council meeting, the council approved the handover to NATCOM consortium, having paid the cost of acquisition. By this approval, the process has come to a closure and the council has mandated the BPE to hand over the two companies to the preferred winner after all due processes are taken care of,” he said.

As said by him, with this, the transaction has come to an end and Council therefore authorize BPE to hand over the two companies NATCOM consortium.

Also Vice President Namadi Sambo, and the permanent secretary of Ministry of Power Mr. Godknows Igali, said that government had settled about 98 per cent of ex-PHCN workers, including their pensions and gratuities directing that any other remaining cases should be referred to the BPE for settlements.

The minister of Mines and Steel Hon. Musa Sada, added that the council also discussed reforms of the National Parks as well as the Federal Housing Authority (FHA) with the aim to restructure the sector and bridge the 17 million housing deficit in the country.

AbdulKareem Mueenah/GEE

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NATCOM consortium pays N14.051bn for NITEL

DigitalSENSE Business News:

In fulfillment of its first obligation, the preferred bidder of the Nigeria Telecommunications Plc (NITEL) and its mobile arm, Mobile Telecommunication (MTEL), the NATCOM Consortium, recently made a part payment of $75.75 million, about N14,051,626,202.30 billion, for the deal, reports DigitalSENSE Business News.

According to the Head of Public Communications, Mr. Chigbo Anichebe in a press statement sighted by DigitalSENSE Business News, the Bureau of Public Enterprises (BPE) said in Abuja that the payment was 30 per cent of the $252.52 million about N46,703,574,000.00 bid price for the acquisition of the assets and business units of the enterprises.

He also quoted the consortium’s lead, who is equally chairman, Skye Bank Plc, Mr. Olatunde Ayeni, as saying the offer letter to the preferred bidder which mandated NATCOM to make an initial deposit of 30 per cent of the bid price not later than 14 days on receipt of the offer letter has since been received.

DigitalSENSE Business News gathered that with this payment, NATCOM is anticipated to pay the balance of 70 per cent of the bid price within 90 days. 

“It is therefore imperative to inform creditors that disbursements to them will be considered only after full payment has been received,” BPE official said.

DigitalSENSE Business News recalls that the National Council on Privatisation (NCP) had on February 27, 2012, approved the privatisation of NITEL and its subsidiary MTEL through a term “guided liquidation.”
Experts explained that the strategy of guided liquidation was agreed by the NCP after due consideration of other options, including previously failed attempts to privatise NITEL and MTEL over Strategic Core Investor Sale and Negotiated Sale strategies as well as the huge liabilities of creditors to the tune of over N300 billion.

Under the guided liquidation strategy, DigitalSENSE Business News reports, all the core assets and business undertaking of NITEL and MTEL were to be sold as single or multiple lots to a qualified bidder by the liquidator under the general guidance of the NCP.

The bidder that acquires the assets of NITEL and MTEL will pledge to continue to operate the assets to provide telecoms services. This is as against the traditional liquidation of an enterprise by asset stripping.
Subsequently, there was advertisements for submission of Expressions of Interest (EOIs) from prospective bidders for the acquisition of the assets and business undertaking of NITEL and MTEL in both local and international newspapers by the liquidator. 

However, at the expiration date on June 30, 2014, 17 organisations and consortia submitted EOIs; and only two satisfactorily met the stipulated prequalification criteria.

DigitalSENSE Business News recollects that on September 18, 2014, the two successful applicants, NATCOM Consortium and NETTAG Consortium, reportedly met the minimum pass mark of 75 per cent pre-qualification standard and issued the Request for Proposals (RFP) which allowed them proceed to data room and due diligence stage before submission of their technical and financial proposals.

Eventually, beat the deadline of November 7, 2014 for submission of bid.

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Jonathan commends AVCNU, CWG-led consortium on NgREN

ITRealms:

President Goodluck Ebele Jonathan has commended the Association of Vice Chancellors of Nigerian Universities (AVCNU), National Universities Commission (NUC) and the Computer Warehouse Group (CWG plc)-led consortium on the establishment of the Nigerian Research and Education Network (NgREN), reports ITRealms.

The president, represented at the occasion held in Abuja by the Minister of State for Education, Barr. Ezenwo Nyesom Wike and were supported by Senator Uche Chukwumerije, Senate Committee Chairman on Education, Honourable Aminu Suleiman, House Committee Chairman on Education, Dr. Mrs. Omobola Johnson, Honourable Minister of Communication Technology, Dr. Macjohn Nwaobiala, Permanent Secretary, Federal Ministry of Education, Senator Amadu Ali, Chairman, NUC Board and Prof. Julius A. Okojie, Executive Secretary, NUC and Chairman, NgREN board.

“As I join the Association of Vice Chancellors of Nigerian Universities (AVCNU) and the National Universities Commission (NUC) in the celebration of this achievement in the establishment of the Nigerian Research and Education Network (NgREN), I commend the individuals and groups that dedicated time and energy to make it a reality,” he said.

President Jonathan also appreciated the World Bank for its support to the NgREN project, and the Executive Secretary of the NUC for championing its cause and the hardworking team of dedicated individuals from within the university system to realize this dream.

He said that government expects all education and research institutions to enlist as members of the NgREN and that the current low ranking of Nigerian universities in quality of teaching and research output will improve significantly within a short time as a result.

Further, President Jonathan urges NgREN stakeholders to ensure the broadband infrastructure and services already provided are maintained and improved upon for the use of all education and research institutions in Nigeria, while directing the Tertiary Education Trust Fund (TETFund), the Nigerian Information Technology Development Agency (NITDA) and the Universal Service Provision Fund (USPF) to provide the necessary funds for this purpose.

For Dr. Omobola Johnson the major milestone in local technology advancement with a network of this magnitude wholly designed by Nigerians, built by Nigerians and managed by Nigerians. She specifically singled out CWG Plc, Resourcery Limited and Phase 3 Telecoms for commendation.

Commenting, CWG group CEO, Mr. Austin Okere said his team has never doubted local capacity to deliver major technology projects for government.

“We have matured in delivering projects of this scale, and are grateful to the NUC and World Bank for the opportunity to prove this with the timely delivery of the NgREN. We do look forward to the opportunity of extending this success in the next phases of the project,” he said.

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Pix: Barr. Ezenwo Nyesom Wike, Minister of State for Education; Dr. Mrs. Omobola Johnson, Honourable Minister of Communication Technology; Mallam Yakassai, Deputy Director, Public Relations, NUC and Mr. Phillip Obioha, Chief Operating Officer, Computer Warehouse Group Plc during the commissioning event of Nigerian Research and Education Network (NgREN) recently in Abuja.