Who Is The Owner Of Nitel?

Nigeria is a country that has experienced a great deal of political, economic and social changes over the years. One of the major sectors that has undergone tremendous transformation is the telecommunication industry. The Nigerian Telecommunications Limited (NITEL) is one of the oldest telecommunications companies in Nigeria, and has been in existence since 1985. The company has had a controversial history, with a lot of uncertainty surrounding its ownership. In this article, we will delve into the issue of who the owner of NITEL is.

The History of NITEL

Before delving into the issue of the ownership of NITEL, it is important to give a brief history of the company. NITEL was initially established in 1985 as a government-owned company, with a monopoly on the provision of telecommunications services in Nigeria. Over the years, the company has gone through a lot of changes, including several name changes, and the introduction of competition in the telecommunications sector.

In 2006, the Nigerian government decided to sell off NITEL and its subsidiary, Mobile Telecommunications Limited (Mtel), to Transcorp Consortium. The sale was not without controversy, as there were allegations of corruption and irregularities in the bidding process. The sale was eventually cancelled by the Nigerian government.

In 2009, the government once again put NITEL up for sale, and this time, it was bought by New Generation Consortium. However, the company was unable to turn around the fortunes of NITEL, and the company eventually went bankrupt in 2015.

Ownership of NITEL

The issue of the ownership of NITEL has been a controversial one, with several stakeholders claiming ownership of the company. The controversy surrounding the ownership of NITEL can be traced back to the privatization of the company in 2006.

Transcorp Consortium, the company that won the bid to acquire NITEL and Mtel in 2006, was owned by a group of Nigerian businessmen, including Tony Elumelu, who was the chairman of the company. However, the bid was cancelled by the Nigerian government, citing irregularities in the bidding process.

In 2009, New Generation Consortium, a company owned by a Chinese firm, acquired NITEL. However, the company was unable to turn around the fortunes of NITEL, and the company eventually went bankrupt in 2015.

In 2018, the Nigerian government announced plans to sell off NITEL and its subsidiary, Mtel, once again. The sale of the company was expected to generate a lot of interest from local and foreign investors, as the telecommunications industry in Nigeria had experienced significant growth in recent years.

Current Status of NITEL

As of 2021, NITEL is still in liquidation, and there is no clear indication of who the owner of the company is. The liquidation process has been a slow and complicated one, with several stakeholders claiming ownership of the company.

The Nigerian government has been trying to sell off the assets of NITEL and Mtel, in order to recover some of the debts owed by the company. However, the process has been hampered by legal challenges, as well as the lack of interest from investors.

Challenges Facing NITEL

One of the major challenges facing NITEL is the competition in the telecommunications industry. Over the years, the industry has experienced significant growth, with several private companies offering telecommunications services to Nigerians.

Another challenge is the outdated infrastructure of NITEL. The company has not kept up with the technological advancements in the industry, and this has affected its ability to compete with other companies in the industry.

Additionally, the issue of the ownership of the company has also affected its operations. The uncertainty surrounding the ownership of the company has made it difficult for the company to secure funding for its operations, which has further hindered its ability to compete with other companies in the industry.

Conclusion

In conclusion, the ownership of NITEL has been a controversial issue, with several stakeholders claiming ownership of the company. The company has undergone several changes over the years, including several name changes, and the introduction of competition in the telecommunications sector. However, the company has not been able to keep up with the advancements in the industry, and this has affected its ability to compete with other companies in the sector. The uncertainty surrounding the ownership of the company has further hampered its operations, making it difficult for the company to secure funding for its operations. As of 2021, NITEL is still in liquidation, and there is no clear indication of who the owner of the company is.