Why we could not pay our debt – Etisalat

The management of Etisalat Nigeria has blamed its inability to pay its outstanding $574 million to the present economic downturn in the country and the devaluations of the Naira coupled with harsh business situation in Nigeria.

The company, also, denied the allegations that it is being investigated by the Economic and Financial Crimes Commission (EFCC) over its inability to repay the outstanding $574m out of the $1.2 bn owed a consortium of banks.

In a statement on Thursday, Etisalat Nigeria said,”The economic downturn of 2015 and sharp devaluations of the naira negatively impacted on the dollar-denominated loan by driving up the loan value, thus prompting Etisalat to request a loan restructuring from the consortium of banks.”

However, Etisalat claimed that it had paid almost half of the $1.2bn loan before discussions with the banks regarding the repayment restructuring became inconclusive.

“Contrary to the widely reported misrepresentations about Etisalat Nigeria’s debt obligation to the consortium of 13 banks, it has become pertinent to set the records straight. Prior to this time, Etisalat had in fact consistently and conscientiously met up with its payment obligations.

“As at today, we can categorically state that the outstanding loan sum to the consortium stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars. This in essence means almost half of the original loan of $1.2bn, has been repaid.

The company stated unequivocally that it is not being investigated by the EFCC following a petition to “the Federal Government asking that Etisalat be investigated” on how the funds from the syndicated loans were utilized as peddled in the media, insisting that their repayment schedule were transparent and accessible to the lenders.

“Etisalat wishes to categorically affirm for the avoidance of doubt that the reports are patently false and most unfortunate considering the damage such misleading information can have not only on our business, but indeed on the telecommunications industry and the country as a whole.

“A simple interrogation of the rigorous process for securing a syndicated loan from a consortium of reputable banks would have exposed the truth to the original writer of this story and other media channels who have subsequently re-circulated the falsehood without interrogation or verification.

“Concerned parties have access to our books and do not require an investigation into how the loan sum was utilized. All of the infrastructure investment and services for which the loan was secured, were paid through our banks and these are verifiable” the company maintained.

You may wish to recalled that Etisalat obtained a $1.2bn loan, as a medium-term facility for seven-year, for the purpose of expanding its network and improving the quality of service and had continued to service the loan until February 2017, when discussions with the banks regarding the repayment restructuring commenced.