Nigeria’s acting Prez orders review of Nitel sale

www.WirelessFederation.com/news: A review of the recent sale of state-run telecoms operator Nitel has been ordered by Nigeria’s Acting President Goodluck Jonathan following controversies surrounding the deal. The bidding for Nitel was won by the New Generation Telecoms Company, a consortium of local and foreign firms last month with an offer of USD 2.5 billion. Later, consortium’s technical partner denied any knowledge of the deal.

A seven-member panel has been set up by Jonathan headed by Justice Minister Adetokunbo Kayode to review the sale. Recurrent issues surrounding the sale would be investigated by the panel and it will report back to the NCP (National Council on Privatisation) by March 20.

Previous attempts to sell off the government’s stake in under-performing Nitel and its mobile subsidiary Mtel has already ran into hitches. In 2006, sale of 51 percent of the company to a local firm for USD 500 million was decided but it was cancelled last year after the government accused the buyer of failing to turn around the debt-ridden and mismanaged company.