Three Nigerian banks take over Etisalat over unpaid N541.8 billion debt

Three Nigerian banks are reportedly set to take over the management of telecommunications company, Etisalat, over unpaid N541.8 billion debt. According to reports, Etisalat had obtained a loan facility totalling $1.72 billion (about N541.8 billion) in 2015 from a consortium of some foreign and Nigerian banks including Guaranty Trust Bank, Access Bank and Zenith Bank.

The telecommunication company that commenced operation in 2009, collected the loan to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Etisalat has blamed the current recession for its inability to pay the loan. The affected banks have dragged Etisalat before the banking sector regulator, the Central Bank of Nigeria, CBN, and the NCC.

They have advised that Etisalat request for a bankruptcy status. NCC has reportedly approved the takeover of the company which is to take place today.