Cellular operator MTN Group has been short-listed to acquire a 75% stake in Nigeria Telecommunications (Nitel), says Nigeria's Bureau of Public Enterprises (BPE).
The BPE says MTN, along with five other bidders, met the technical and financial requirements to acquire the stake. The other bidders include Brymedia, the AF21/ Spectrum Consortium, Globacom Nigeria, Omen International and New Generation Telecommunications.
Last year, the BPE invited prospective investors to apply to acquire either at least 75% equity in Nitel, or a stake in one or several of its components, namely, SAT-3, domestic fixed-line telephony, national fibre-optic transmission backbone, CDMA network and Mtel.
This is the fifth time the Nigerian federal government is attempting to sell the once vibrant telecom company, which had held a monopoly in the telecoms sector for decades. The operator has taken a dip in the past years, following deregulation of the sector and the emergence of MTN and Globacom, among others.
While MTN has declined to reveal any details of its bid, it is expected that winning the bid could boost the cellular operator's subscriber base in its largest market.
“Further to the announcement by the Nigerian Bureau of Public Enterprises, the MTN Group can confirm that it has expressed interest in some of the assets of Nitel,” says Nozipho January-Bardill, MTN Group spokesperson and group executive for corporate affairs.
While Nigeria was credited with the increase in regional subscribers, after MTN added five million subscribers to its base in three months, there are some challenges.
The cellular operator is facing a fall in subscriptions as another SIM card registration law comes into effect. Nigeria accounts for 28.8 million subscribers out of the operator's total base of 108.5 million, but new legislation has raised concerns about MTN's growth in the country.
The growth in subscribers was mostly due to MTN continuing to roll out its network, and the company's “innovative” product offerings. The cellular giant previously stated that the implementation of its distribution channels earlier this year is starting to pay off as the new channel is more effective.
The opening of financial bids for the privatisation of Nitel and its mobile arm, Mtel, has been scheduled for next week, 16 February.
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