By Michael Effiong
Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele has revealed that Etisalat Nigeria is on the road to recovery and actually made N16 billion in the month of June.
Responding to questions on the rationale behind the take over of Etisalat Nigeria (now 9 Mobile) during the press conference of the Monetary Policy Committee in Abuja today, Mr Emefiele stated that the regulatory body, Nigeria Communications Commission (NCC) and the CBN decided to save the business because its collapse could have had serious implications.
He noted that Etisalat employed over 4,000 staff and had over 20 million subscribers, and though it was a private business, the ramifications of its failure would have hurt the other stakeholders associated with the company.
Mr Emefiele said that the regulators noticed that the creditors or banks were about to take actions that could have negatively affected the bank’s standing and thus the need for an intervention.
In his words “The intervention has been positive and the company by its operations and activities have remained strong since the Interim Board was put in place. In what we can call its most turbulent month, it had a revenue of N16billion.
Mr Emefiele also revealed that there has been a flurry of interested investors and that the Advisers that have been appointed will do due diligence when bids are advertised and the best investor chosen to take over the running of the business
He stated that the Interim Board from his reckoning will operate for 90-180 days before the new major investor comes on board.
On the MPC meeting, he said the interest rate will remain the same because the inflation rate of 16.1% is still very high.Interest rate has been left at 14%