Technology
$125m Loan: Smile Faces Disqualification as 9mobile’s Reserve Bidder
By Modupe Gbadeyanka
There are strong indications that Smile Communications Nigeria Limited’s failure to disclose that its Nigerian shareholders have ongoing and challenging debt to a consortium of banks is threatening its position as the reserve bidder for the sale of 9mobile.
The telco data company has been accused of not only presenting false information in the bidding round but that is now attempting to derail the ongoing sale of the telecoms company by Barclays Africa having lost its attempt to become the preferred bidder.
Unsatisfied with the ongoing bid process, Smile Communications had on May 9, 2018, written the Board of Directors of Emerging Markets Telecommunication Services Limited and Guaranty Trust Bank Plc, representing the 13 local banks, the lenders of the $1.2 billion loan to Etisalat, now known as 9mobile,”raising issues after the fact as it desperately seeks to derail the ongoing bid process for the sale of 9mobile to Teleology”, said a source conversant with the transactions.
Smile has alleged that Teleology, the preferred bidder for the sale of 9mobile does not have the financial capacity to buy 9mobile, and that it has all it takes to reposition 9mobile and make it attractive and competitive again, within 90 days, if given the opportunity to acquire 9mobile. Smile Communications assured that the company would inject fresh millions of dollars from foreign financing outside Nigeria into 9mobile to pay off its indebtedness to the banks and any other group the company is indebted to, and we will still have enough to invest in 9mobile and make it competitive.
Despite its promises and threats, it was discovered that Smile Communication Nigerian partners and shareholders are indebted to banks to the tune of $125 million – a material fact they ought to have disclosed at the beginning.
According to reliable sources, Smile Communications got the loan through a consortium of banks including, Afrexim Bank, and in turn routed the loan through a domestic bank, Diamond Bank resulting in the lenders huge non-performing loans.
The banks are saying that if shareholders of Smile Communications have the money to buy 9mobile, it should have long paid the banks the money it is owing, “asking why they would replace a bad loan with another bad loan”.
Disturbed about the letter written by Smile Communications to the Board of Directors of Emerging Markets Telecommunication Services Limited and Guaranty Trust Bank Plc, the telecoms lawyer, Olaniwun Ajayi wrote Smile Communications on May 14, 2018, warning it to desist from presenting false information about 9mobile sale.
Part of the letter read:…”We would like to refer you to the process letter for phase 111 of the transaction, particularly the second paragraph is Appendix B therefore, which stipulates that the company, the lenders and Barclays Africa reserve the right at the sole discretion and without liability to change, suspend or terminate the procedures set out in the process letter at any time and in any respect, to reject any and all proposals and to terminate negotiations and discussions at any time and for any reason, without being obliged to give prior notice or reasons therefore, with any or all potential purchasers and to negotiate with any party in a manner and to a timetable other than that outlined in the process letter….As you understand, by your continued participation in the process, Smile confirmed its acceptance of the foregoing terms, amongst others, agreeing to be bound thereby, in the circumstance, the basis for the complaints and threats of legal action in your letter is unclear, as are your intentions in this regard.
“Please note that the Company and lenders hereby reserve their rights to pursue all remedies available under all applicable laws,” the lawyer said and advised Smile Communication not to contact the company or the lenders any further on this matter anymore.
Technology
Nigeria to Launch NIGCOMSAT Satellites in 2028, 2029
By Adedapo Adesanya
Nigeria has set 2028 and 2029 as the timeline for the deployment of its new satellites, NIGCOMSAT-2A and 2B, respectively.
The Managing Director of NIGCOMSAT, which is Nigerian Communications Satellite Limited and the premier satellite operator in Nigeria, Mrs Jane Nkechi Egerton-Idehen, disclosed this at the second Nigerian Satellite Week in Abuja on Monday. She noted that the development is expected to boost military intelligence, surveillance, and regional connectivity.
“For 2A and 2B, we have started the process. We have closed the tender and are now back into the financing and implementation stage. 2A is built to come up in 2028, and 2B for 2029.
“When they are up and running, they are expected to provide security within the borders and neighbouring countries. They will support the security agencies because data collection and intelligence in real time is important. Satellites like communication satellites allow that, irrespective of where they are,” she said.
In his remarks, the Minister of Communications and Digital Economy, Mr Bosun Tijani, said the satellites form part of the nation’s strategy to strengthen digital infrastructure.
Mr Tijani explained that the satellites will complement ongoing investments in 90,000 kilometres of fibre-optic cable and nearly 4,000 telecom towers, which are being rolled out nationwide and extended to neighbouring countries, including Cameroon, Niger, Chad, Burkina Faso, and the Republic of Benin.
He stressed that satellite technology is critical for national development, affecting education, agriculture, business, and emergency response.
“The president’s approval of NIGCOMSAT-2A and 2B demonstrates a clear commitment to building the future. These satellites will enhance security, connect remote communities, and extend our fibre-optic network into neighbouring countries,” he said.
“Some of these neighbouring countries pay up to ten times more for internet capacity than Lagos. Extending our fibre network will not only improve connectivity but also enhance border security and regional collaboration.
“Satellite technology affects everything, from how a child in a rural community accesses the internet to how farmers make critical decisions and how businesses operate across distance,” the Minister said.
Also speaking, the Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, welcomed the development, saying the military will leverage the satellites for operational efficiency.
“The Nigerian Army will continue to use space assets to improve intelligence gathering, surveillance, and operational coordination across all theatres of operation,” he said at the event, represented by Major General Kennedy Osemwegie, Commander of the Nigerian Army Cyber Warfare Command (NACWC).
Technology
Interswitch, KCB Group to Deliver Innovative Financial Solutions in East Africa
By Modupe Gbadeyanka
A partnership to advance digital payments and financial inclusion across East Africa has been strengthened between Interswitch and KCB Group.
Both parties have agreed to expand digital payment infrastructure and deliver innovative financial solutions that meet the evolving needs of individuals, businesses, and institutions across the region.
The aim is to accelerate seamless, secure, and inclusive digital payments in East Africa, where the leading Africa-focused integrated payments and digital commerce enabler, Interswitch, recently announced an expansion of Verve card acceptance footprint, leveraging its consolidated partnership with KCB Group, Kenya’s largest financial services group by assets, following a similar move in Uganda through the local KCB Franchise in February 2022.
During a recent executive engagement at KCB Group headquarters in Nairobi, the chief executive of Interswitch, Mr Mitchell Elegbe, held high-level discussions with KCB leadership, including its chief executive, Paul Russo.
At the core of the strengthened collaboration is the integration of Interswitch’s robust payment rails, card scheme, and emerging digital token solutions with KCB Group’s expansive regional footprint and trusted banking franchise.
This integration enables the acceptance of Verve cards and tokenised payment solutions across KCB’s extensive merchant point-of-sale network in Kenya and Uganda, significantly enhancing everyday usability for customers while strengthening KCB’s digitally driven retail payments offering.
The consolidated partnership is expected to drive increased merchant acquisition, improve interoperability across payment ecosystems, and expand access to secure, cashless transactions. It also reinforces both organisations’ shared objective of deepening financial inclusion and accelerating digital commerce across East Africa.
“Our collaboration with KCB Group represents a powerful alignment of vision and capability. By combining our technology-driven payment solutions with KCB’s strong regional presence, we are unlocking new opportunities to scale access, drive innovation, and deliver greater value to customers across East Africa,” Mr Elegbe stated.
Technology
Telcos to Compensate Customers for Service Disruptions—NCC
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations.
In a Sunday statement, the commission noted that its position is that customers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.
Under this directive, NCC said erring operators would compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs).
Mobile Network Operators (MNOs) will be required to pay these compensations for instances of poor quality of service recorded within specified time frames.
“The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur”, according to the statement.
The directive is rooted in the agency’s broader regulatory philosophy that places the consumer at the centre of Nigeria’s telecommunications ecosystem.
“Telecommunications services today underpin economic activity, social interaction, and access to digital opportunities. When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system.
“While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry”.
The commission explained that it has designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards.
Further to this directive by the commission to MNOs on compensation to consumers, the regulator has mandated Tower Companies that own the critical infrastructure, such as masts, for Quality of Service delivery, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.
“The commission will continue to reinforce the obligation of operators to invest consistently in network resilience, capacity expansion, and infrastructure upgrades to meet the growing demand for telecommunications services.
“At the same time, it will deploy regulatory tools that promote fairness, transparency, and accountability across the sector, ensuring that every subscriber receives the quality of service they deserve while sustaining a telecommunications industry capable of powering Nigeria’s digital future”, the statement added.
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