The Bureau of Public Enterprises (BPE) has secured an essential court confirmation for the appointment of a guided liquidator in the privatisation of the formerly state-run Nigeria Telecommunications Limited (NITEL) and its mobile subdivision, MTel. Benjamin Dikki, Director General of the privatising agency, announced this significant development.
Dikki reminisced that the National Council on Privatisation (NCP) had priorly endorsed the appointment of a liquidator for the guided liquidation of NITEL/MTel, subject to this court confirmation. With the judicial green light now received, Dikki affirmed that the privatisation process is making steady progress, vowing the agency’s commitment to seeing it through.
“The journey forward is steadfast. As we speak, potential bidders are currently engaged in Data Room due diligence on the assets. A pre-bidders’ conference was organised before this exercise, ensuring that the bidders are thoroughly briefed and equipped with essential documentation for the process,” explained Dikki.
Despite three unsuccessful attempts at selling the public telecommunications company, Dikki maintained his optimism. Analysts have questioned whether the telco was under some kind of curse. However, Dikki asserted the importance of not selling the telecom company merely as scrap, despite its lost relevancy following the liberalisation of the telecoms sector.
In a recent interview with The Nation, Dikki pointed out the successful outcomes of guided liquidation in the privatisation of other companies such as the Nigeria Fertiliser Company (NAFCOM), operating as Notore, Jebba Paper Mill, and Savannah Sugar. All these companies have since been flourishing, indicating potential success for NITEL under similar circumstances.
“With the ongoing reform and liberalisation of the sector, the importance of NITEL has significantly diminished. However, that does not conclude its future. The model of NITEL’s privatisation is a matter of legality, as it holds over N400 million in debts,” Dikki said.
The government’s decision to opt for guided liquidation rules out the need for additional investment, Dikki explained. According to him, this approach will ensure that NITEL and Mtel continue operating, with specific terms dictated by the buyer’s technical proposal. Moreover, any claims by creditors would be limited to the proceeds from the sale of assets rather than leading to further liability for the government or shareholders.
“NITEL still has the potential to run a broadband capability in this country thanks to its fibre optic range nationwide and dedicated right of ways for cabling in major cities,” he added. This detailed mode of privatisation is designed to minimise government risks related to the past incurred liabilities.
*Source: BizTech Africa*
*This article was updated in 2025 to reflect modern realities.*
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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