Why President Tinubu’s Directive to Sell NITEL’s Successor is Hitting a Snag
President Bola Tinubu’s February directive for the divestment of NatCom Development and Investment Limited (NATCOM), the successor entity to the defunct Nigerian Telecommunications Limited (NITEL), appears to be encountering significant delays. Despite urgent calls from the Nigerian Communications Commission (NCC) for its swift sale, even suggesting a disposal “for scrap” if necessary, the Asset Management Corporation of Nigeria (AMCON), the nation’s bad loan resolution agency and current custodian of NATCOM, is signaling a less immediate timeline for the asset’s transfer, choosing instead to prioritize its stabilization as a crucial national telecommunications asset in the African tech landscape.
AMCON’s Strategic Stabilization Over Immediate Divestment
AMCON’s current strategy pivots away from an expedited sale, focusing instead on nurturing NATCOM as a strategic national asset within Nigeria’s competitive telecoms sector. According to Jude Nwauzor, AMCON’s Head of Corporate Communications, the corporation’s immediate efforts are directed towards ensuring NATCOM’s stability and operational viability. Nwauzor emphasized that the telecommunications industry operates under stringent regulatory frameworks, necessitating extensive engagement with relevant authorities. He stated, “As you know, the telecommunications sector is a highly regulated industry, so AMCON is engaging with the regulators and at the right time will do what is best for NATCOM. Presently, the alleged divestment from NATCOM is not on the table just yet, but it’s on the horizon.” This approach underscores a deliberate process of regulatory alignment and operational strengthening before any divestment takes place. Meanwhile, telecom industry executives have hinted that a successful divestment of NATCOM could significantly unlock the company’s inherent value and potential within the Nigerian market.
The current pause in NATCOM’s divestment highlights a complex interplay between presidential mandates, regulatory pressure, and AMCON’s strategic asset management responsibilities. While the presidential order and the NCC’s insistence underscore a desire for rapid resolution, AMCON’s commitment to stabilizing NATCOM as a valuable national telecommunications asset suggests a more measured, long-term approach. The future of NITEL’s successor, therefore, remains subject to ongoing engagements and strategic planning, with its eventual divestment poised as a future consideration rather than an immediate action.
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