The Senate on Tuesday began investigation into the $1.2 billion debt of Etisalat (Nigeria).
The Senate decision was sequel to a motion sponsored by Senator Adeola Olamilekan, who expressed dissatisfaction with the alleged diversion of the $1.2 billion for other purposes.
Olamilekan, who recalled how the company was set up, said the syndicated loan was acquired in 2013 as a medium-term, seven-year facility to fund expansion of the network from a consortium of 13 banks in Nigeria.
Olamilekan lamented that there was no evidence of what the company did with the loans collected from the banks.
The senator, who raised the alarm that about 4,000 jobs are at stake as a result of the suspicious dealings, asked the Senate to wade into the matter because if the issue is not addressed, it will have negative implication for the Nigerian business environment and on foreign investment in Nigeria in general.
He added that the country’s business environment must be protected and insulated from all forms of fraudulent dealings in order to advance the government’s drive towards promotions of genuine investment in Nigeria.
In 2013, Etisalat Nigeria acquired a syndicated loan from 13 banks as a medium-term, seven-year facility to fund the expansion of the network in Nigeria.
Since then, the company has only repaid 42 per cent of its loan.
The Senate observed that although it should not ordinarily be the duty of the Senate of the Federal Republic of Nigeria to wade into the individual debt crisis of private sector businesses, “we are convinced that if this situation is not properly handled, it will have negative implications for the Nigerian Business Environment and on Foreign Investment in Nigeria in general”.
The Senate has thus mandated the Committee on Banking, Communications, Capital Market and National Security and Intelligence to investigate the management and utilization of the $1.2 billion loan facility obtained from the 13 Nigerian Banks; mandated the above Joint Committee to make recommendation on way the Nigerian Financial Governance Structure can be strengthened by legislations to prevent any similar reoccurrences in the future; and urged the relevant Financial Intelligence Agencies of the Federal Government to investigate the management of Etisalat Nigeria and hold the defaulting parties accountable for their actions.
Commenting on this issue, the Senate President, Dr. Abubakar Bukola Saraki, said: “We must first and foremost, always do all that we can to protect the jobs of our people.
“On the issue of investment planning and corporate governance, we must also look at preventing these kinds of issues.
“It is my hope that this committee will come up with a framework that will help us address issues like this in the future.”
Senate probes $1.2b Etisalat debt crisis
