Etisalat vs Banks: CBN, NCC intervene to save jobs, Asset Stripping

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Etisalat

Following the deepening crisis between Etisalat and a consortium of 13 Nigerian Banks over a syndicated loan of about US$1.2 billion granted the telecom company by the banks, the Central Bank of Nigeria (CBN) on Friday, said the apex Bank and the Nigeria Communications Commission (NCC) decided to intervene in the crisis in order to prevent job losses and asset stripping.

Confirming the intervention of the two regulators in the loan dispute, the CBN Spokesman, Isaac Okorafor said: “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself.

He further explained that the CBN and NCC, sensing that banks might go ahead…

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