Buhari ‘looks into’ NITEL sale deals

President Muhammadu Buhari’s request Tuesday to review the sale of the Nigerian Telecommunications Limited to NATCOMS, in what may pose another hurdle to the revival of the nation’s pioneer national operator.

The President gave the marching order to the Ministry of Communication Technology (CommTech), which has also been asked to explore technology sector stakes to drive revenue for Nigeria, in the face of dwindling oil income.

CommTech Ministry says that the Nigerian tech sector, which contributes 10% of Nigeria’s GDP can grow to become 20%, if some of its proposals are approved for implementation.

“NATCOM Consortium’s offer of $252.25 million was accepted by BPE as the winning bid, beating NETTAG Consortium, which was disqualified by the government agency over alleged breach of the sale rules.”

File photo shows Dr Tunji Olaopa, Permanent Secretary, Ministry of Communication Technology (right) and Mr Peter Jack, DG, NITDA at DEMO Africa 2014 in Lagos

Meanwhile, the NATCOM Consortium was named the new owners of the telecoms company in January when it paid $176,575,700, which represented the balance of $75,756,300, the 30% initial deposit it had made, after winning bids for NITEL, according to the privatization midwife agency, the Bureau of Public Enterprises (BPE).

Chigbo Anichebe, head of Public Communications of BPE, who officially confirmed the payment at the time, said that NATCOM paid the 70% balance four days ahead of the April 7 deadline for the sales deal.

NATCOM Consortium’s offer of $252.25 million was accepted by BPE as the winning bid, beating NETTAG Consortium, which was disqualified by the government agency over alleged breach of the sales rules.

“Where you don’t need EXCO approval and you are not in breach of the law and will not lose money, you can go ahead. Now that oil costs less and we are contending with its theft, we have to move to areas where we can realize revenue quickly” President Muhammadu Buhari to Nigeria's CommTech Ministry

President Muhammadu Buhari of Nigeria

However, President Buhari Tuesday requested “for a comprehensive report on the NITEL sale, when Dr Tunji Olaopa, the Permanent Secretary of the Ministry of Communication Technology briefed him at the State House Villa in Abuja.

Buhari said he was “he was concerned by the continuing protests of former NITEL employees and other Nigerians over the manner in which assets of the company were sold”, according to a post-briefing press state issued by the State House.

In the face of falling oil prices globally, the President has asked Olaopa and his team at the CommTech Ministry to look inward and develop the potentials of the Nigerian technology sector as a key revenue-generator for the nation’s economy.

President Buhari also directed the Ministry to bring forward for his consideration and approval, all pending proposals for the development of the country’s IT sector which require the approval of the Federal Executive Council.

“Where you don’t need EXCO approval and you are not in breach of the law and will not lose money, you can go ahead. Now that oil costs less and we are contending with its theft, we have to move to areas where we can realize revenue quickly,” President said.

President Buhari welcomed the plan by the Ministry to use post-offices across the country for IT and financial transactions especially in the rural communities, saying that he was happy to hear that “we are recovering the post offices from rats and rodents.”

The Ministry’s presentation to the President dwelled heavily on the potential of the IT sector which, Dr. Olaopa said, contributes 10 percent of the country’s Gross Domestic Product, GDP, but could grow to 20 percent if some proposals by the Ministry are approved and implemented.