Extent of NITEL’s financial woe revealed

12 Nov 2004

Nigerian Telecommunications (NITEL) suffered a NGN19 billion (approximately USD145 million) loss in 2003, compared to a profit of NGN8 billion in 2002, according to the telco’s management contractors, Pentascope International. According to that company, the heavy annual deficit comprised an NGN5 billion operational loss, pension fund provision of NGN6 billion, and a debt write-off of NGN8 billion. In addition, NITEL owes a further NGN14.8 billion to other organisations, although Pentascope claims the operator is owed NGN27 billion in outstanding accounts. Reacting to criticism of the figures from the Nigerian Senate Committee, NITEL’s management claimed the operator’s accounts would return to the black in 2004 following an anticipated 15% increase in total revenues.

Nigeria, ntel (formerly NITEL/M-Tel)