Celtel Nigeria to be sued by distributors

26 Nov 2007

The Association of Licensed Telecoms Distributors of Nigeria (ALTDON) is planning a NGN10 billion (USD85 million) lawsuit against the management of Celtel Nigeria, citing unfair business practices by the cellco. ALTDON President Dr. Ayo Ojo said business is no longer profitable for the trade group members because of ‘the excessive greed, breach of agreement and unethical ways [in which] things are done by Celtel and other providers.’ He said that the lawsuit was partly to recover losses from the operator but also to act as a deterrent to other companies. ‘Our lawyers are now…filing a case against Celtel Nigeria…in our attempt to seek redress for the various acts of unfair trade practices and breach of agreement which have always been committed against us and now being intensified by the present management,’ Ojo told local daily This Day. Amongst the allegations are that Celtel has cut the two-year sales contracts down to rolling three-month ones, and that it has almost halved sales commissions.

According to TeleGeography’s GlobalComms database, Celtel ended the first half of 2007 with just under eight million subscribers, giving it a 25% market share.

Nigeria, Airtel Nigeria