Chinese firm buys Nitel for $2.5 Billion

New Generation Telecommunications Limited, a consortium led by China's second largest telecoms firm China Unicom (Hong Kong) Ltd was yesterday declared the preferred bidder of the Nigeria Telecommunications Limited (NITEL) after it bided $2.5 billion (N373 billion) during the second round of the bid opening in Abuja.

In the first round, the firm had bided $333 million (N50 billion), but drastically upped it in the second round. Apart from China Unicom, New Generation Consortium is made up of an indigenous telecoms firm, GiCell Wireless Limited, as well as Minerva Group based in the United Arab Emirates.

The bid was for 75% of the old state telephone monopoly, which has however been left moribund for many years since the coming of mobile phone companies into Nigeria in 2001. New Generation's bid also came with a bank draft of 30% of the bid price. The acquisition does not include NITEL's debt obligations, estimated to be in billions of naira. Director General of the Bureau of Public Enterprises (BPE), which organized the bid, Dr Christopher Anyanwu, announced federal government's commitment to pay the debts from the transaction's proceeds.

The nearest bid to the preferred bidder's was $956 million (N142.4 billion) by Omen International Limited (BVI), which earned for it the position of reserve bidder. The result was announced by the acting chairman of the Technical Committee of the National Council on Privatisation, Prof. Taiwo Osupitan.

The bid opening, which was broadcast live by the Federal Radio Corporation of Nigeria and the Nigeria Television Authority (NTA), featured five companies after Globacom was declared disqualified for not following the rules specified by BPE.

Following the advice of the Nigerian Telecommunications Commission (NCC), BPE had announced at a pre-sale conference of NITEL held last month that all existing telecom operators in Nigeria with GSM license wouldn't be allowed to buy M-TEL alongside NITEL, as that would cripple competition in the industry. Glo didn't adhere to this rule, the NCP ruled.

The transaction is now awaiting final approval of the NCP, which is chaired by the Vice President.

An elated team leader of the New Generation Telecoms Consortium, Usman Abubakar Gumi, said Nigerians should prepare for a new dawn in the Nigeria telecoms industry. He said his technical partner Unicom China has an estimated 250 million subscriber base with over 500,000 base stations. He said NITEL's 600 base stations is mere child's play compared to Unicom China's. He said, "We are committed and are going to pay within the stipulated time set aside by the BPE. Our bid was not hypothetical but real. We know NITEL is worth more than that."

Telecom giant MTN Nigeria had bided $25 million (N4billion) for SAT-3. It refused to alter the bid in the second round, which made it to eventually lose out to the bid by New Gen Consortium for the whole of NITEL and its components. Other bidders were Brymedia Consortium ($551million) and AFZI/Spectrum Consortium ($376 million).

This effort marks the fifth time the federal government is trying to sell NITEL. After a botched sale under controversial circumstances during the Obasanjo administration, NITEL was sold to Transcorp Plc for $500million (N63 billion) with a commitment to the federal government to turn its fortunes around within a year or face revocation. NITEL's fortunes however after Transcorp's takeover.

Following the non performance of Transcorp after one year, the federal government invoked the Share Sale and Purchase Agreement (SSPA), calling on the company to step down as core investor for a new one to be selected. The 51% shares to be given to the new core investor would be contributed by the federal government and Transcorp. This took place in December, 2007.

n July of 2008, the BPE, with the approval of the National Council on Privatisation (NCP) appointed BNP Paribas to provide advisory services towards the search for a new core investor. According to the BPE, the transaction was to be completed in February, 2009. But that was not to happen. A consortium of banks including UBA, Union bank, Intercontinental and Wema Bank, among others, had claimed ownership of NITEL upon hearing of plans to sell it to out to a new owner. The group said Transcorp borrowed about N75 billion from it to finance the NITEL purchase, which was yet to be paid back. The federal government last year paid back the loan after a final revocation of Transcorp's holding.

The staff of NITEL and MTEL are currently owed salaries of over 20 months but the BPE boss promised they would be paid from the proceeds.

The journey to privatise NITEL has been a long and arduous one. It started in 2000. It was stopped in 2002 when IILL, the core investor failed to pay the $1.317 billion it offered. In 2003, Pentascope was appointed by government to run a three year contract to prepare the sleeping giant for sale but this failed following alleged embezzlement and incompetence. In 2006, Orascom of Egypt offered $256.53 million but this was rejected by the federal government on the grounds that it was far below NITEL's market value, before the coming of Transcorp on November 14, 2006.

Daily Trust

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Super Eagles World Cup camp opens May 15

Super Eagles 2010 FIFA World Cup training camp is to flag off on May 15 at the Richards Bay in South Africa although the Hampshire Hotel in Durban will be the team's base for the duration of their first round games.

The Nigeria Football Federation (NFF) delegation led by president Sani Lulu Abdullahi, who was in South Africa at the weekend inspecting the venues and finally picked the Hampshire, a new, 107-room hotel which does not open its doors until the end of February. The squad will leave for Durban on June 6, six days before the Super Eagles play Argentina in their first game of the Mundial.

Also on the inspection trip were executive committee member Taiwo Ogunjobi, general secretary Bolaji Ojo-Oba, head of marketing Adama Idriss and media officer Idah Peterside.

The Nigerian team appears to have fallen in love with Durban. The Super Eagles camped in Durban to prepare for the 27th African Cup of Nations in Angola where the two-time cup winners ended up with the bronze that has now truncated Coach Shaibu Amodu's dream of leading the team to the World Cup.

Meanwhile, the NFF has restated that their arrangements for the Super Eagles to play Paraguay in an international friendly on March 3 are still on course, despite reports that the South Americans will be playing Ghana on the same date.

NFF Secretary General Bolaji Ojo-Oba said yesterday that the Glass House is aware of the reports linking Paraguay with Ghana, but said they had received reassurances from the Paraguayans that their arrangements with Nigeria were still in place.

"We are aware of the rumours that they want to play Ghana. we contacted them as soon as we saw it, and they assured us that that was not true," Ojo-Oba told kickoff.com Sunday night. "We will definitely play Paraguay on March 3 in London."

"They are sending the contract over to us on Monday. We will look at it, and if all goes as agreed, we will sign it and return it to them."

A venue is yet to be picked for the game, according to Ojo-Oba, who says the Paraguayans are handling those arrangements.

"They are the ones taking care of that part of the arrangements and speaking with the English FA."

Ojo-Oba's position appears to be given credence by the international fixture list on the FIFA website. A week ago, Paraguay versus Ghana was listed as one of the friendly games for March 3, but has now been taken off the calendar.

Nigeria have been drawn with Argentina, Greece and South Korea for the World Cup in June.

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Riz Khan show focuses on Nigeria's leadership crisis

A constitutional leadership crisis threatens to tear Nigeria apart.

With the elected president, Umaru Yar'Adua absent since November the parliament has handed power to Goodluck Jonathan, the vice-president. 

The guests invited to give their insight are former Nigerian anti-corruption chief Nuhu Ribadu, Nigerian human rights advocate Hauwa Ibrahim and Emira Woods, co-director of foreign policy at the institute for policy studies.

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Goodluck Jonathan pledges to resolve power crises

ACTING President Goodluck Jonathan  has said the Federal Government was determined to make electricity available for all Nigerians.

He stated this when he received Mr. Samuel Jonah, Director of Jonah Capital Companies; a pan-African mining investment group, in State House, Abuja.

Dr. Jonathan affirmed that improved power supply will fast-track wealth creation for the citizenry and assured that Government is working round the clock to address the sector.

He noted that Government is aware of the yearnings of Nigerians for improved power supply and expressed Government's resolve to alleviate the strains being experienced by small and medium scale enterprises with regards to adequate power supply. "The power sector will be addressed and Government is totally committed on this," he stated.

The Acting President welcomed initiatives towards exploring alternative sources of electricity generation, saying "we will encourage what is best for the country".

Earlier, Jonah, who is also a distinguished member of the Honourary International Investors Council (HIIC), congratulated the Acting President on his assumption of office. He said his company is ready to partner with Government on coal exploration as an alternative energy source to boost electricity generation in the country. He said discussions are ongoing with the Ministry of Mines and Steel Development on the best way forward in this regard.

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Tension in Borno over Al-Jazeera Boko Haram video

Borno is tension-soaked after Al-Jazeera released a video showing persons in police uniforms ordering the killings of unarmed civilians in the Boko Haram sectarian crisis.

Over 1,000 people were believed to have died and properties destroyed.

The footage obtained by Al-Jazeera shows that many of the deaths occurred once the fighting was over in Borno, Yobe, Kano and Bauchi states in July and August 2009.

Al-Jazeera, a renowned international cable network based in Qatar, released the video about the August 2009 mayhem early last week. The video clippings also revealed how persons suspected to be policemen were discussing how not to shoot one of the victims in the head so they could take away his hat.

Claims by Al-Jazeera that elements of the police and army staged a follow-up operation in which house-to-house searches were conducted and individuals were apparently selected at random and taken to a police station have caused stir in Borno, forcing security agencies to beef up security across the state and warning people against violence.

Borno government and the state police command declined comment, but many have accused the Al-Jazeera of deliberately spreading mischief and wanting to incite violence in the country.

While the video clips of the shooting of arrested persons by the police rented the Al-Jazeera airwaves during the week, many in Borno state continued to react in mixed feelings as memories of the ill-fated Boko Haram massacre in opposition to westernisation flooded back to torment victims and their relatives.

Though the situation in Maiduguri, the state capital, has remained calm as the police have since been on security surveillance, many residents fear the video could stir the hornet's nest.

The fear is worsened by the January ethno-religious crisis in Jos, the Plateau State capital, where hundreds were killed.

Most people contacted from within the government circle declined comments on the Al-Jazeera video clips, but hinted at the possibility of Borno Government investigating the cable network "to ascertain why they chose to broadcast the video clips of crisis eight months after the people of the state have gotten over their traumas. This is a mischief that is unbecoming of a reputable media outfit like Al-Jazeera."

The state deputy governor was quoted in the Al-Jazeera broadcast as defending the alleged actions of the police and the military during the religious strife.

According to him, the military and the police who are being paid with tax payers' money can only protect the citizens and not shooting them.

That emerged as family of the late Baba Fugu Muhammed, the father-in -law of the fallen Boko Haram leader, Muhammed Yusuf, sued President Umaru Yar'Adua, Borno State Governor, Ali Modu Sheriff, former Attorney General of the Federation (AGF) and Justice Minister, Michael Aondoakaa, Inspector General of Police (IGP), Ogbonna Onovo, for allegedly ordering the summary killing of their aged father during the massacre eight months ago. Baba Fugu was said to have been killed by the police on suspicion that he was a chief financier of his son-in-law's atrocity.

"They killed our innocent father on unfounded suspicion that he sponsored the sect," eldest son of the slain father-in-law, Alhaji Babakura Fugu, told Sunday Independent.

"That is why we are approaching the court as defender of the weak. They not only killed my father, they also destroyed our expansive family house, rendering our mothers homeless. This is cruel, and we won't let it go unchallenged," Babakura added.

Babakura said his father had earlier on told authorities of Yusuf's unbecoming behaviour and later voluntarily reported to the police station after he was accused of bankrolling the sect. "But rather than act on the information my father gave them, they ended up killing him," he stated.

In the suit filed before a Borno State High Court 3, he and his siblings accused Yar'Adua, the Attorney-General, Police Chief and State Governor of complicity in the extra-judicial killing of their father and destruction of their properties.

Presiding judge in the case, Justice Mohammed Mustapha, has granted them exparte motion to serve all the accused the notice of summon.

Anayo Adide, counsel to the litigant, said the President is sued for issuing the order that led to the alleged extra-judicial killing of people in the state, while the state government is joined in the suit for ordering the destruction of the Fugu family compound.

"The IGP is considered a major culprit for allowing police to shoot their father alongside many others in what was extra-judicial murder that is punishable under our law. The Federal and State Attorneys General were joined in the suit for allowing the breach of constitutional rights of the people during the Boko Haram scuffle," he added.

Daily Independent

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