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

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.

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