Etisalat Nigeria owes Access Bank USD131 million in debt

Abraaj

According to the Reuters News Agency, Etisalat Nigeria owes Access Bank USD131 million.

The Findings is a follow up information released by Herbert Wigwe, the CEO of Access Bank Nigeria PLC, one of the tier 2 banks which took over the management of Etisalat for unpaid debts.

Herbert Wigwe hinted that Etisalat’s UAE office is looking at converting Etisalat’s loan to equity in the company. This route the resolution of the matter will see Etisalat UAE increase its 40% equity in the Nigerian unit from 40% to a number that is not known yet.

Etisalat has not also made new comments except that released by Ibrahim Dikko, Vice President for Regulatory Affairs at Etisalat Nigeria disclosed that the company was on a positive earnings territory before EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), this further buttress analysts estimates that the company has never made profit since it started operations in 2008.

As for Access Bank, recouping the NGN40 billion is a must on its agenda. In its full year 2016 result, the bank’s provision for net impairment charge increased to NGN21,9 billion compared to NGN14,2 billion oin 2015.

GTBank had the highest rise in its Loan impairment charges which was went up by over 400% to NGN65,2 billion from just about NGN12,4 billion in 2015.

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