Nigeria’s Senate to probe 9mobile, former Etisalat loan default

Etisalat

Less than a week after creditors of 9mobile announced they have appointed Barclays as their advisors in the sell-off bid, Nigeria’s Senate said it will probe the loan default.

It would be recalled that 9mobile formerly called Etisalat had defaulted on its USD1.2 billion syndicated loan it sourced from Nigerian and international lenders.

The Senate, Nigeria’s upper legislative arm said it will look into circumstances surrounding the loan and its subsequent default.

The Senate noted as its session earlier today that it is:

“Aware of allegations that the loans had been diverted to other uses not related to the business, as there was no evidence of what the company did with the loans,”

“The decision of the core investors to pull out of Nigeria raises issues of suspicion, on the intent of a company in obtaining a loan facility, defaulting and then pulling out of the country, hoping that their shares would be used to write off the debts”.

Senate president, Senator Bukola Sarakki said:

“We must protect jobs, corporate governance, investment climate in the country. I implore the committee to do a thorough job in the interest of the economy and the country”.

9mobile has not yet commented on the matter as at the time of writing this report.