Nigerian Telecommunication Limited (NITEL) has been in great shambles for more than a decade now. The state- appointed liquidator announced on Monday that Nigeria is seeking buyers for the distressed state-owned former telecom company NITEL.
Nigeria opted to wind up Nitel in March after almost a decade of struggling to sell it, due to the shambolic state of its fixed lines and high levels of debt, despite the country having one of the world’s fastest-growing telecoms markets.
The liquidator, appointed by the government’s National Council of Privatization, said in an advert it wanted bidders with five years of telecom experience and a net worth of at least $200 million.
It said bids must be submitted on June 30, adding that the assets would be handed over to the preferred bidder in December.
The privatization body has said it opted for a sale method it called “guided liquidation” because it wanted to protect the government from future claims and liabilities, as proceeds of the sale may be less than the value of the debt.
Nitel owes creditors – mostly suppliers – around 400 billion naira ($2.5 billion), with creditors taking a loss if the proceeds from the sale are not enough to repay all the debt.
