CBN, NCC, 13 banks make Etisalat’s board

After last weekend’s voluntary resignation of its Chairman, Hakeem Bello-Osagie, embattled telecommunications company, Etisalat Nigeria Limited, as its Chief Executive, Mathew Willsher, and Chief Financial Officer, Olawole Obasunloye, may have been advised to exit in an apparent “seamless transition” to an interim management following an agreement with the consortium of its creditors.

A reliable regulatory source told Daily Sun that the advice came as the 13 creditor banks have agreed to appoint a new Chief Executive and Chief Financial Officer for the company.

Its board has also been reconstituted to include representatives of the CBN, the NCC and the 13 banks.

The telco, with 21 million subscribers, is embroiled in a N541 billion debt crisis owed a consortium of 13 commercial banks, which took it over recently when it failed to pay.

The Etisalat debt trap had already forced Mubadala Group, the major investor from the United Arab Emirates, to pull out of Nigeria’s fourth largest mobile operator before its Chairman, Hakeem Bello-Osagie, also stepped down at the heat of the controversy.

The impending exit of the Chief Executive Officer, Matthew Willsher, and the Chief Financial Officer, Olawole Obasunloye, will however, mark a turning point in the current effort to turn things around for the company, its shareholders and subscribers.

“The transition was successful. Everybody is back at their duty post and the lights are back on,” a senior official of the telco said. The transition agreement was brokered with the banks by the CBN and the Nigerian Communications Commission (NCC).

Earlier, the NCC had warned the creditors that the licence awarded to Etisslat Nigeria is not transferable, effectively stopping the banks from taking ownership of the company.

An official announcement on the interim management team is expected to be made by the company soon.

Meanwhile, Nigerians have been reacting on the implication of development in the company.

Telecoms stakeholders have explained that there was nothing unusual in the resignation of both the CEO and CFO of Etisalat as it is a phenomenon during takeover. However, they disclosed that there could be job losses and possibly name change with the recent restructuring.

Chairman, Association of Licensed Telecommunications Operators of Nigeria (Alton), Mr. Gbenga Adebayo, said there are more implications on the business and that it is worrisome that there could be more casualties with the pulling out from the telco.

“It is a concern for the industry because of huge job losses and our hope is that the issue would be resolved in the interest of all stakeholders.

It won’t affect subscribers at this stage, definitely not operations, but the restructuring is only affecting the management executives.

On his part, President, Association of Telecommunications Companies of Nigeria (Atcon), Olusola Teniola, said, “it is part of the restructuring that the CEO and the CFO are going to be replaced by the new board. Now, Etisalat has seven board members that cut across CBN, NCC and the representatives of the consortium of banks. With that composition of new board members, the only way to put down a strategy will require the removal of the CEO and CFO, after the chairman had voluntarily stepped down. That is normal in a take over of a company. In effect, there is new management running Etisalat and an official announcement should be communicated going forward.

“Well, the customer is king and it is for the new board and new shareholders to decide what quality of service they want to render to its subscribers. I would have thought that both CBN and NCC should make sure that the way forward to know whether the brand still remains and does not adversely affect the telco, and the implications could be small or large depending on how the board steers the company.

Meanwhile, all efforts to reach Etisalat Vice President Nigeria, Ibrahim Dikko, and NCC’s Director, Public Affairs, Mr. Tony Ojobo, for their reactions proved abortive.