Etisalat Exits Nigeria, Wants Brand Name Phased Out After Three Weeks
The Etisalat Group, the parent company of Etisalat Nigeria, has pulled out of Nigeria and demanded that the use of its brand be phased out after three weeks.
The Abu Dhabi-based company decided to exit the country after talks between Etisalat Nigeria and a group of banks over the restructuring of a $1.2bn loan failed.
Chief Executive Officer of Etisalat International, Mr Hatem Dowidar, told Reuters that the company had terminated its management agreement with Etisalat Nigeria.
He, however, said talks were ongoing with Etisalat Nigeria to provide technical support and that its brand can be used for another three weeks before it is phased out.
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In June, after the Etisalat Group informed the Abu Dhabi Securities Exchange of the failure of Etisalat Nigeria to reach an agreement on the restructuring of the deal, the Central Bank of Nigeria, the Nigerian Communications Commission and officials of the telco met on June 21 to resolve the debt crisis.
Nine days later, on June 30, Mr Hakeem Bello Osagie resigned as the Chairman of Etisalat Nigeria following the approval of a restructuring plan for the company.