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| Nigeria phone privatisation off | Nigeria phone privatisation off |
| (20 minutes later) | |
| The Nigerian government has cancelled the sale of the state telecoms company Nitel to a consortium backed by the former President Olusegun Obasanjo. | The Nigerian government has cancelled the sale of the state telecoms company Nitel to a consortium backed by the former President Olusegun Obasanjo. |
| A spokesperson said a new controlling stakeholder was being sought after the new owners failed to improve the running of the company. | A spokesperson said a new controlling stakeholder was being sought after the new owners failed to improve the running of the company. |
| It is the second time a major privatisation carried out by Obasanjo's government has been halted. | It is the second time a major privatisation carried out by Obasanjo's government has been halted. |
| His successor President Umaru Yar'Adua recently reversed an oil refinery sale. | |
| Transnational Corporation (Transcorp) acquired a controlling stake in Nitel in 2006. It was established by a group of Obasanjo's business allies. | Transnational Corporation (Transcorp) acquired a controlling stake in Nitel in 2006. It was established by a group of Obasanjo's business allies. |
| Before the end of his tenure, it bought a number of state assets, including Nitel, amid accusations that proper privatisation rules were not followed. | Before the end of his tenure, it bought a number of state assets, including Nitel, amid accusations that proper privatisation rules were not followed. |
| The sale of Mtel, Nitel's mobile phone subsidiary, was also cancelled on Monday. | The sale of Mtel, Nitel's mobile phone subsidiary, was also cancelled on Monday. |
| Nigerian media reports say Transcorp believes the move came just as it was about to turn the companies around. | Nigerian media reports say Transcorp believes the move came just as it was about to turn the companies around. |
| "Ironically, the purported reversal comes at a very crucial period of Transcorp's efforts at revitalising both organisations," the company told the Lagos-based Vanguard newspaper. | "Ironically, the purported reversal comes at a very crucial period of Transcorp's efforts at revitalising both organisations," the company told the Lagos-based Vanguard newspaper. |
| "We are certain of an amicable settlement of this challenge in our favour," it added. | "We are certain of an amicable settlement of this challenge in our favour," it added. |
| Concern | Concern |
| Information Minister John Odey said the search for a new investor with sufficient resources to improve the telecoms company would begin immediately. | |
| The Nigerian government has been concerned about the running of Nitel and Mtel for some time. | The Nigerian government has been concerned about the running of Nitel and Mtel for some time. |
| In November last year, the Senate Committee on Communications warned Transcorp was failing to stop Nitel and Mtel deteriorating. | In November last year, the Senate Committee on Communications warned Transcorp was failing to stop Nitel and Mtel deteriorating. |
| "Nitel is the nation's gateway in the communication sector of the economy and must not die," the committee said. | "Nitel is the nation's gateway in the communication sector of the economy and must not die," the committee said. |