NITEL/MTEL buyer makes part payment

Nigeria’s Bureau of Public Enterprises (BPE) said that the preferred bidder at the recently held liquidation of NITEL/MTEL had paid 75.7 million dollars (N12.7 billion) as part payment of its 252.5 million dollars bid price.

This is contained in a statement by BPE’s Head, Public Communications, Mr Chigbo Aniechebe, in Abuja on Thursday.

According to the statement, the payment made by NATCOM Consortium, the preferred bidder of NITEL/MTEL, is 30 per cent of the bid price and was in line with the guided liquidation process of the transaction.

“This is in line with the offer letter by the Bureau of Public Enterprises (BPE) to the preferred bidder which mandates NATCOM to make an initial deposit of 30 per cent of the bid price not later than 14 days on receipt of the offer letter.

“With the payment of the 30 per cent, NATCOM is expected to pay the balance of 70 per cent of the bid price within 90 days.

” It is therefore imperative to inform creditors that disbursements to them will be considered only after full payment has been received,” it stated

It would be recalled that the National Council on Privatisation (NCP), at its meeting of Feb. 27, 2012, approved the privatisation of NITEL/MTEL through “guided liquidation”.

The strategy was adopted by the NCP in the light of the previous failed attempts to privatise NITEL/MTEL and the huge liabilities of creditors to the tune of over N300 billion.

Consequently, BPE held a public bidding which NATCOM Consortium, won on Dec. 3, 2014 with a bid price of 252.5 million dollars.