The Nigerian Communications Commission (NCC) on Wednesday explained why the preferred bidder for 9mobile, Teleology Technology Limited, is yet to take over the telecom firm.
Following series of twists and legal turns in the bid process, Teleology Technology Limited emerged the preferred bidder in February.
However, in April, the board of the Nigeria Communications Commission (NCC) said the telecom industry regulator would not approve the sale of 9mobile to any bidder without first determining its technical competence.
The executive vice-chairman of the commission, Umar Danbatta, had said despite the emergence of Teleology Technology with a bid of over $500 million, the Central Bank of Nigeria would still carry out a financial evaluation of the bidder.
In addition, Mr Danbatta said the NCC would still carry out a technical evaluation to establish the company’s technical competence.
Speaking on the sidelines of the 2nd Annual Stakeholders Consultative Forum with Academia and Industry in Abuja on Wednesday, the executive vice chairman clarified that the delay in Teleology Technology taking over 9mobile was because the technical evaluation process was yet to be completed.
Mr Danbatta denied media reports that the delay was as a result of accumulated $100million debt by 9mobile to some equipment manufacturers.
“As soon as the necessary checks and investigations being carried out are satisfactorily concluded and approved by the NCC board, the preferred bidder will take over 9mobile,” he said.
Further clarification on the issue, reported by Daily Trust, came from the chairman of NCC board, Olabiyi Durojaiye, who told reporters that the cause of the delay was because Barclays Africa, the appointed transaction financial adviser, was yet to submit its final report on the sale process to the NCC.
“We are not giving it (9mobile) to them (Teleology) yet. The Barclays Africa that rated them has not completed their work, and we at the board are yet to get the final report,” Mr Durojaiye told Nigerian journalists in Durban, South Africa.
“Teleology would not get the 9mobile licence without the approval of the commission’s board. They have to satisfy and pass some conditions set before the takeover. They must have passed the competence test. They must have the capability to retain all the former staff of 9mobile.
“We don’t want a situation where about 4,000 workers would be laid off just because of takeover. Already there is unemployment in the country and we don’t want the takeover to add to that.
“So, that is why we are putting every necessary thing in order to forestall all negative things that may occur after takeover.”
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