Transcorp makes delayed payment for NITEL

6 Sep 2006

Nigerian conglomerate Transnational Corporation (Transcorp) has paid a further NGN63 billion (USD510 million) towards its purchase of a 75% stake in Nigerian Telecommunications (NITEL). On 6 July Transcorp was named the winner of the NITEL stake by the Bureau for Public Enterprises (BPE) with a bid of USD750 million, but it failed to pay the USD500 million deposit, instead lodging just 10% of the purchase price (USD75 million) with the regulator. There has been widespread public criticism of the government’s silence over the company’s failure to meet the terms of the sale. Director General of the BPE, Irene Chigbue attempted to explain the situation two weeks ago, telling journalists that Transcorp failed to make the payment because the Share Purchase Agreement (SPA) had not been signed by both parties.

Nigeria, ntel (formerly NITEL/M-Tel)