Senate Moves To Save 4000 Etisalat Jobs, Woos Private Sector To Help Economy

On Tuesday, October 24th, the Senate passed a Motion on the need for intervention in the recent Etisalat Nigeria $1.2 billion debt crisis. 

In 2013, Etisalat Nigeria acquired a syndicated loan from 13 banks as a medium-term, seven-year facility to fund the expansion of the network in Nigeria. 

Since then, the company has only repaid 42% of its loan. 

The Senate observed that although it should not ordinarily be the duty of the Senate of the Federal Republic of Nigeria to wade into the individual debt crisis of private sector businesses — we are convinced that if this situation is not properly handled, it will have negative implications for the Nigerian Business Environment and on Foreign Investment in Nigeria in general. 

Additionally, because 4000 Nigerian jobs are at stake if this situation is not rectified, the Senate:

– Mandated the Committee on Banking, Communications, Capital Market and National Security and Intelligence to investigate the management and utilization of the $1.2billion loan facility obtained from the 13 Nigerian Banks; 

– Mandated the above Joint Committee to make recommendation on way the Nigerian Financial Governance Structure can be strengthened by legislations to prevent any similar reoccurrences in the future; and,

– Urged the relevant Financial Intelligence Agencies of the Federal Government to investigate the management of Etisalat Nigeria and hold the defaulting parties accountable for their actions. 

Commenting on this issue, the Senate President stated: “We must first and foremost, always do all that we can to protect the jobs of our people.

“On the issue of investment planning and corporate governance, we must also look at preventing these kinds of issues. 

“It is my hope that this committee will come up with a framework that will help us address issues like this in the future,” he said.

In another development, the Senate President, on Thursday, stated that one of the primary objectives of the 8th National Assembly is to increase private sector participation in all spheres of the economy in order to make the country viable.

Saraki, according to a statement by his Chief Press Secretary, Sanni Onogu, in Abuja, stated this while welcoming the Board of Directors of the United States (U.S.) Chamber of Commerce and the Africa Business Centre (ABC) during their courtesy visit to the leadership of the Senate at the National Assembly.

Other members of the delegation led by the ABC Co-Chair and Chairman of Dangote Group, Alhaji Aliko Dangote, included the U.S. Ambassador to Nigeria, Mr. Stuart Symington, Chairman of Zenith Bank, Mr. Jim Ovia, President of the ABC, Mr. Scott Eisner and several other board members.

The President of the Senate was joined by Majority Leader, Senator Ahmad Lawan, Deputy Leader, Bala Ibn Na’Allah and 13 other Senators.

Saraki said that the aim of the 8th National Assembly under his leadership is to reduce “government intervention in sectors that traditionally are guided by market forces.”

“One of our primary goals is to increase the private sector’s participation in the economy by reducing government intervention in sectors that traditionally are guided by market forces,” Saraki said. 

“This reform will help create more industries needed for job growth and economic stability. 

“To this end, several of the Senate’s priority economic bills are making their way to final passage in both Chambers.”

The President of the Senate said that “trade and job creation through trade is a two-way street and that the National Assembly is open to listening to ideas about how to further the cooperation between Nigeria and the U.S. private sector.”

Over the past two years, Nigeria has invested heavily in the agriculture sector as an integral initiative to diversify the economy.

Saraki said that “obviously we have invested too much to change our national strategy. 

“The current challenge is how do we attract investment to grow the industries within the agriculture sector.”

Several members of the delegation thanked the President of the Senate for his leadership on economic reform issues and in undertaking a review for recommendations to enhance Nigeria’s ICT sector.

IBM announced at the meeting that the company will soon commence its Digital Nation training program in Africa where they seek to train some 25 million people—mostly in Nigeria—for “new collar jobs.”

The Senate President applauded the project and commended the companies for their efforts to train young Nigerians.

“Nigeria’s ability to grow the economy with jobs is a national priority” Saraki said. “ICT development is the way to develop employment and skills training opportunities for many young people in Nigeria and we must continue to work together to create the enabling environment to realize this potential.”

He also welcomed the Co-Chair of the Africa Business Center, Alhaji Aliko Dangote, to the National Assembly and commended him for his contributions that helped shape the Senate’s Economic Legislative Agenda through his participation in a business leader’s roundtable in Lagos in September 2016.

“It should be noted that several of his keen observations and ideas were incorporated into the National Assembly’s Recommendations to President Muhammadu Buhari, on growing the economy,” Saraki stated.

According to Mr. Eisner, the U.S. Chamber of Commerce represents three million U.S. companies. 

“The creation of the ABC represents a new era of economic engagement. It is intended to help breakdown market barriers for increased U.S.-Nigeria trade and investment.”

On his part, the leader of the delegation, Dangote, said the visit to the President of the Senate and the Leadership of the Senate by the U.S. Chamber of Commerce and the Africa Business Centre was meant to discuss things of interest “as they affect Nigeria, Africa and the United States.”

“There are a lot of things in terms of what other companies are doing in terms of job creation, training, Africans in ICT and also how to improve the situation and get most of the U.S. companies to come and be involved in agriculture where Nigeria can have food security and be major exporters of food items rather than importing food,” Dangote said.

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