SNYTEL Partners with Ericsson to Acquire NITEL Nigeria.

[Briggz5d]

The efforts by the Federal Government to privatise the Nigerian Telecommunications Limited and its mobile telephony services arm, Mtel, after several failed attempts may finally come to fruition as a Nigerian firm, SNYTEL I.G Will Communications (Snytel) has finalised partnership agreement with a Swedish-based company to acquire 75 per cent share in the biggest telecommunication outfit in Nigeria.

NGBUZZ investigations revealed that Snytel has also partnered with a Chicago-based financial consortium, DKAI, to provide over $5 billion for investment purposes in the telecommunication and power sector in Nigeria with $1 billion provided specifically for the acquisition of NITEL/Mtel.

Snytel, a telecommunication service provider with an important stake in NITEL/Mtel with successful operations in Rivers and Bayelsa states, reached the agreement with DKAI on July 10, 2010 with an initial provision of $1 billion lodged in a Netherland- based financial institution, specifically for the acquisition of NITEL.

The company, it was reliably gathered, had forwarded its intentions to the presidency requesting it to approve one of the three options through which it aimed to revive the NITEL/Mtel including outright acquisition of 75 per cent stake, strategic partnership on a 50-50 per cent basis profit sharing ration or concession from the federal government for a period of 35 years.

It was noted that the company entered into a technical partnership agreement with Ericsson of Sweden, to provide the technical assistance for the revival of NITEL.

Details of the technical agreement copy, which was obtained by Ngbuzz, explained that Ericsson, one of the world's best telecommunications giants, is expected to provide assistance for the turn-around of NITEL and to expand its coverage across the cowuntry.

Meanwhile, the Chairman and Chief Executive Officer of Snytel I.G Willis Ltd, Mr. Precious Elekima has confirmed the existence of such partnership with Ericsson and provision of over $1 billion by DIKAI towards acquisition of NITEL/Mtel.

He said they have perfected plans to acquire and revive NITEL/Mtel to optimum capacity and assured that the telecommunication outfit would be fully operational within 180 days.

He said: "We have been able to work out some funds, we have raised about a billion dollars for Nitel project as first step and will either put the first option of joint venture or partnership, the second option will be concession, the third option will be outright purchase of the 75 per cent stake in NITEL/Mtel.

"All these we are ready to do and we are trying to engage government to dialogue and we are sure that within 180 days, the face of telephone will change in Nigeria. We are in quest to bring down the cost that Nigerians spend on telephone and provide employment to teaming unemployed youths and also help the government make revenue," he said.

He noted that: "We did not come out with any position all this while because we are busy sourcing for funds, there have been stories of people giving opportunities and privileges and they couldn't pay. We wanted to first of all make sure that we have the funds, the funds are available and it can be transferred to the Central Bank of Nigeria any moment government approves our bid.