Etisalat gives three-week ultimatum for brand phase out in Nigeria
The Nigerian arm of Etisalat has been given three weeks to phase out the brand in the country by its management following the collapsed of its $1.7bn loan talks.
Despite efforts from Nigerian regulators to save the Telecom company from collapse the renegotiation of a $1.2bn loan failed.
Chief executive of Etisalat International, Hatem Dowidar said on Monday that the there was no need for the brand in Nigeria after the collapse of the loan talks.
Etisalat Nigeria in a statement issued three weeks ago claimed that it had repaid 42 percent of the loan.
“As at today, we can categorically state that the outstanding loan sum to the consortium (of banks) stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars. This, in essence, means almost half of the original loan of $1.2bn, has been repaid.
“Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced,” Ibrahim Dikko, vice-president, Regulatory & Corporate Affairs of Etisalat Nigeria said.
However, Etisalat International announced on Monday that it was pulling out as all UAE shareholders of the company have exited and left the board and management of the Nigerian brand.
Dowidar said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it can use the brand for another three weeks before phasing it out.
Following this development millions of Nigerians who are subscribed to the network will have to go through the inconvenience of switching to another brand.