Jitters, as talk between Etisalat and Nigerian banks hit brick wall

Onome Ohwovoriole

Onome Ohwovoriole

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

Related Posts

Next Post

Comments 1

  1. Anodebenze says:

    this does not make sense.i.2 billion dollar invested by etisalats.let say,they paid about 400 millions to buy licence,which means they have liquidity to markets their products.last year some customers said elisalat gives a more friendly service,but report recently said they losing customer rapidly.
    there is a risk they will close very soon. with the money lended to elisalat,they would have captured at least 20 % of the market and grow minimal to break out and makes profit,at this pace{ (i.e ) pre-recession}.they canmake it in 5 years,this recession exposes all them.this recession have expose their rearend with the blowing and gone with the wind.
    meaning, they do not have a good structured organisation.management must be fired, and the injecting of new idea and blood,they need to re-structures,extend or transfer some debt to somewhere.as long as this debt is not solved or the problem risk is reduced and the replacement of the board and mangegement is energises.it is sudden death for elisalat or take over by competitator,taking this debt.
    A solution can be found can be done this way,the cbn can persude those bank to swap this dollat content converted into naira,the nse waiving some codition for listing,enlistes on nse,uses ordinary shares or debenture or lien on some asset/or to buys this converted debt and spread this debt into equity.( a Debt in batches of 50 naira,100 naira,500 naira).
    The banks will get off the back of tis new board and management, they may get some fund to aggressive drive in sales the new.management will be able to relax,and make long-term growth plan.

Leave a Reply

Your email address will not be published. Required fields are marked *


first bank
Zenth Bank

Welcome Back!

Login to your account below

Create New Account!

Fill the forms below to register

Retrieve your password

Please enter your username or email address to reset your password.