The National Council on Privatisation (NCP) has granted approval for the sale of a NITEL/MTEL property located at No 3-5, Moloney Street, Tafawa Balewa Square, Onikan, Lagos, to the Lagos State Government.
The property was listed for sale by the liquidator of NITEL/MTEL Non-Core Assets at the cost of N2.5 billion.
The transaction was approved by the Council, chaired by Vice President Yemi Osinbajo, during its second meeting for 2023 held on Tuesday, February 21, 2023.
NITEL was incorporated in 1984 and formally commenced operations in 1985. It was jointly owned by the Federal Government of Nigeria (FGN) and First Bank of Nigeria Plc (FBN).
MTEL was established in 1996 out of NITEL with the goal of providing cellular services.
It started a General System for Mobile communication (GSM) in March 2003, after NITEL transferred its GSM licence to it from the Nigerian Communication Commission (NCC).
However, in 2012, NCP opted for a guided liquidation strategy for the privatisation of NITEL and MTEL.
This was done after due consideration of other options and considering the failed attempts to privatise NITEL and MTEL through strategic core investor sales and negotiated sale strategies.
Additionally, the companies had acquired huge liabilities to creditors amounting to more than N300 billion.
The property is currently encumbered by the activities of illegal occupants and the Lagos State Government has promised a harmless takeover.
The sale of the property is expected to be a positive step towards the privatisation of NITEL/MTEL, which will lead to the creation of more jobs as well as other economic opportunities.