The Senate Committee on Banking and National Security has been mandated to investigate why and how Etisalat defaulted in its $1.2 billion loan it took from 13 Nigerian banks.
Nigeria’s Senate voted in favour on Tuesday of launching an investigation into the default on a $1.2 billion loan earlier this year by Etisalat Nigeria and into how the funds were used.
Etisalat Nigeria, now called 9mobile, took out a syndicated loan from 13 Nigerian banks but failed to make repayments earlier this year.
“The Senate is aware of allegations that the loans had been diverted to other uses not related to the business, as there was no evidence of what the company did with the loans,” the upper house said in an order paper published on Twitter.
The vote mandates the Senate Committee on Banking and National Security to launch an investigation, which, if required, will pass its findings on to regulators including the financial crimes agency.
In its order paper the Senate also raised questions over the Abu-Dhabi listed parent company Etisalat, which subsequently terminated its management agreement with its Nigerian business and gave up its 45 percent stake.
“The decision of the core investors to pull out of Nigeria raises issues of suspicion, on the intent of a company in obtaining a loan facility, defaulting and then pulling out of the country, hoping that their shares would be used to write off the debts,” the document said, without naming Etisalat.
Etisalat declined to comment.
The motion said that, as of 2016, Etisalat Nigeria had started defaulting on its $1.2 billion loan obligations leading to a few bailouts from its parent company in Abu Dhabi.
The document also said it was understood that about 42 percent of the loan has been repaid, “remaining an outstanding debt of $696 million representing 58 percent of its capital, which Etisalat has failed to serve since 2016”.
Bukola Saraki, the Senate president, said after the vote that it was important to launch an investigation.
“We must protect jobs, corporate governance, investment climate in the country. I implore the committee to do a thorough job in the interest of the economy and the country,” he said.
Nigerian lenders have picked Barclays to try to find new investors for 9mobile, two banking sources told Reuters last week.
Nigerian lawmaker, Desmond Elliot has joined other Nigerian politicians in clamouring for regulation of social media.
The Lagos legislator and Nollywood actor, says Nigerian youths display rude behaviour on social media
In the video, the Actor-turned-Lawmaker called on the youth to get into Government if they are tired.
He said ;
Mr. Speaker, we need to adress certain things ;
The Nigerian Youth, The Social Media, The Social Influencers, All of these are making the narrative that we are seeing today, except we are joking with ourselves.
Social media is good but it has Negative impacts.
Let me thank you for condeming the killings and carnage that happened at Lekki. When i went through the comments i could not believe it Mr. Speaker, the curses, the abuses from children and i ask myslef, is this Nigeria ? What is going on?
Children cursing, people having the effontery to enter an Oba’s palace, hold the staff of office ? Culture is gone. Mr. Speaker, in the next 5 years, there will be no Nigeria if we don’t act now.
The youth is not only those who do the peaceful protest, but those who have looted and destroyed lives are also youths as well.
He also seized the opportunity to plead with Nigerian celebrities, social media influencers and motivational speakers to “tune down on the hate narrative.”
He said the youth have a constitutional means to change government and it is called the ‘PVC’.
He added ;
Go to the elections, if you are tired come and enter government. People are dying. The narrative must change.
An Ugandan man, Raymond Steven Sekitayira slumped and died a few days to his wedding in Kampala.
Information Nigeria gathered that Sekitayira, who slumped at his office, was rushed to IHK hospital where he gave up the ghost.
His death was announced by Rotaract Club of Nateete Kampala on Thursday morning.
The wedding to his beau, Joy Nekesa was scheduled to hold on Saturday, November 7th, 2020 and the introduction ceremony was to hold on Saturday, October 31, at the bride’s family home.
“With deep sorrow , we announce the passing of RAYMOND STEVEN Sekitayira, a Past President, Treasurer, SAA and many other hats wore while at the Rotaract club of Nateete Kampala. His impact will forever be felt among us. Heartfelt condolences go out to Friends and family.” the statement reads.
Friends and colleagues have taken to social media to mourn the deceased.