Etisalat: CEO, CFO Resign As A Result Of Financial Crisis

As a fall out to the unresolved financial crisis in Etisalat Nigeria, the company’s chief executive officer (CEO), Mr. Matthew Willsher, and chief financial officer (CFO), Mr. Wole Obasunloye, have resigned their appointments.

Their resignation came a few days after Mr. Hakeem Bello Osagie, chairman, Emerging Markets Telecommunication Services Limited, doing business as Etisalat Nigeria resigned his appointment following the approval of a restructuring plan for the telecommunications firm.

The resignations also followed Etisalat Group’s reporting disclosure on the Abu Dhabi Stock Exchange two weeks ago that it had pulled out of Etisalat Nigeria and was transferring 45 per cent of its stake and 25 per cent of its preference shares in its Nigerian subsidiary to United Capital Trustees Limited, the legal representative of the lending banks.

Apart from Etisalat Group, other shareholders of Etisalat Nigeria include Mubadala Development Company with a 40 per cent stake and Emerging Markets Telecommunications Services (EMTS), representing the Nigerian shareholders, with 15 per cent.

It will be recalled that Etisalat had in 2013 approached a consortium of 13 local banks for a loan of $1.2 billion for network upgrade and expansion. The money was sourced in dollar and naira denominations.

Etisalat wrote its creditors citing economic downturn of 2015-2016 and naira devaluation, which adversely impacted on the dollar-denominated component of the loan requesting the halting of repayment of the loan until it was able to raise more money.

The creditor Banks, which involved in the loan deal include: Zenith Bank, GTBank, FirstBank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank rejected the request and resolved to take over the firm and pursue the prosecution of Etisalat’s directors.

Their attempt to take over Etisalat was halted by the Nigerian Communications Commission (NCC), the telecoms industry regulator, which insisted that its licence was not transferable without its approval. NCC’s position was supported by the Central Bank of Nigeria (CBN) as they mediated in the impasse.

A reliable source hinted that the mass resignations were an attempt by the directors and senior executives of Etisalat to clear themselves of criminal and civil liability over the debt impasse.

Daily Reporters gathered from informed source that a decision on the appointment of new directors, CEO and CFO for the company has been made and may be announced soon as the banks are determined on restructuring the board and management of the telecoms company to reflect their interest.