Connect with us

General News

Rule of Law @ Test in Econet Wireless Dispute

Published

on

Kindly share this post

After long drawn years of legal tussles in and out of court corridors, the recent judgment by the Federal High Court sitting in Kaduna reinstating Econet Wireless Ltd’s equity in Airtel Networks Nigeria appears to have reignited the ebbing flames of recurring frictions in the company since inception.
At the centre is Econet Wireless, the South Africa based founding shareholder of what was originally known as Econet Wireless Nigeria.
Econet Wireless, promoted by Strive Masiyiwa, was one of the licensees of the great GSM auction that has spread the mobile revolution in Nigeria but the relationship went sour after a board meeting sacked his company as a shareholder in the Nigerian operations.
Masiyiwa said Econet Wireless was left with no option but to launch a legal offensive.
It however waited patiently until January 24 when Justice Shuaib delivered his judgment on a matter which has been before the courts since 2003, and ordered that: Airtel should reinstate the five per cent (5%) shareholding of Econet Wireless Ltd (EWL); All actions, and resolutions taken by the company since October 2003, at which EWL was entitled to be notified, and to participate in, as a shareholder, but was prohibited, are null and void. This includes decisions to sell shares, issue shares, and also transfer shares to third parties. The name change from Econet Wireless Nigeria Limited, effected in 2003, was irregular, and must be reversed forthwith.
Justice Shuaib further ordered the Corporate Affairs Commission (CAC), to cancel any certificate previously issued for the change of the name of the company and restore the name of the company to Econet Wireless Nigeria Limited.
Emmanuel Otokhine, head of public relations at Airtel Nigeria however said that it has filed an appeal against the judgment, while reiterating that said judgment will have no impact on the holdings of other shareholders in Airtel Nigeria.
Airtel Nigeria was founded as Econet Wireless Nigeria in 2001, with Mr. Masiyiwa’s Econet Wireless International owning 5per cent stake and a contract to run the company.
But Econet’s Nigerian partners scaled back the management deal, called in Vodacom and renamed the company Vee Networks.
Vodacom then pulled out and in 2006, the Nigerian partners reached a deal to sell 65% stake to Celtel, a unit of Zain.
Econet said that such a deal is not valid because it was not given the first right of refusal on the shares.
Masiyiwa promptly initiated legal proceedings to seek justice and before Bharti begun talks to buy Zain’s African operations for about $10.7 billion, he claimed that Zain had given an undertaking to a tribunal set up by the Federal High Court of Nigeria the previous year that it will not sell its Nigerian unit until the issue of its ownership is resolved.
The dispute is also being heard by the United Nations Commission on International Trade Law arbitration.
As Econet Wireless savour this initial victory, there are some issues begging for some clarifications.
For instance, why did Celtel, Zain and Bharti-Airtel go ahead with the purchase of the Nigerian company when it seemed clear that Econet Wireless was a shareholder?
What happened to the supposed undertaking given by Zain to a tribunal that it will not sell its Nigerian unit until the issue of its ownership is resolved?
Nigeria should be careful not make a business concept out of rule of law.  Enforcement of rule of law is still the only way to rebuild Nigeria’s economy hobbled by years of corruption and mismanagement
The international business community and indeed the world is watching with keen interest and hoping for amicable resolution of this dispute.
Already, Nigeria has plummeted in World Bank Global Doing Business Report 2012, as it ranked 133 out of 183 countries in the world as result for many factors.
For Nigeria to attract the much needed investment there must be rules and performance requirements that are fair for everyone in the environment.


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Continue Reading
Advertisement
Comments

General News

Senate Gives Tinubu Nod to Borrow Fresh $6Bn

Published

on

Kindly share this post

Senate on Tuesday approved the fresh $6 billion loan request forwarded to the lawmakers by President Bola Tinubu.

Senate Gives Tinubu Nod to Borrow Fresh $6Bn

Lawmakers approved the fresh loan on the same date the request letter was read by Godswill Akpabio, senate president.

The Senate approved the loans following the presentation and consideration of the report by Senator Aliyu Wamakko, chairman, Senate Committee on Local and Foreign Debts.

President Tinubu had written to the Senate seeking approval to borrow a total of $6 billion to finance key government projects and address budgetary gaps.

The requests were contained in two separate letters addressed to Godswill Akpabio, president of the Senate, and read during Tuesday’s plenary.

In the first letter, the President requested approval to obtain a $5 billion loan from Abu Dhabi Bank.

According to the President, the facility will be used to cover the nation’s budget deficit and support debt financing, among other fiscal obligations.

The request forms part of the Federal Government’s efforts to stabilise public finances and sustain ongoing government programmes.

In a separate communication, Tinubu also sought approval to secure a $1 billion UK Export Finance loan facility from London Citi Bank.

The loan is intended for the rehabilitation of key port infrastructure, including the Lagos Port Complex and Tin Can Island Port.

The President said the project aims to address critical infrastructure deficiencies in the country’s maritime sector

According to him, the rehabilitation will help improve efficiency, enhance safety standards, and support Nigeria’s efforts to diversify its economy beyond oil.

He added that the initiative would also strengthen Nigeria’s position as a regional trade hub.

Both requests have now been considered and approved by the Upper Legislative Chamber.


Kindly share this post
Continue Reading

General News

FG Earmarks $2Bn to Launch 2 Satellites in 2028, 2029

Published

on

Kindly share this post

Federal government has fixed 2028 and 2029 for the launch of two communication satellites, NIGCOMSAT-2A and NIGCOMSAT-2B, as part of efforts to strengthen security and expand digital connectivity.

FG Earmarks $2Bn to Launch 2 Satellites in 2028, 2029

The government will be committing over $22 billion on the ambitious space-led growth agenda focused on new satellite launches, increased industry revenue and expanded broadband access in underserved communities.

At the opening of the 2026 Nigerian Satellite Week in Abuja, Dr Bosun Tijani, minister of Communications, Innovation and Digital Economy, confirmed the government’s approval for the acquisition of two new satellites—NigComSat 2A and 2B, describing the move as a “defining commitment” to national development, digital sovereignty and economic competitiveness.

Also, Mrs Jane Nkechi Egerton-Idehen, managing director of Nigerian Communications Satellite Limited (NigComSat), noted that the projects have moved beyond procurement to the execution stage.

She said the satellites are designed to enhance intelligence gathering, surveillance, and connectivity across Nigeria and neighbouring countries, particularly in support of security operations.

“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.

On his part, Tijani, said the satellite programme forms part of a broader government strategy to deepen digital infrastructure nationwide.

According to him, the initiative complements ongoing investments in fibre-optic expansion and telecommunications infrastructure, while extending connectivity beyond Nigeria’s borders.

“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.

“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,” he said.

 


Kindly share this post
Continue Reading

General News

FG Launches CLHEEAN to Streamline Access to Government Services

Published

on

Kindly share this post

Federal government has announced the launch of CLHEEAN, an artificial intelligence-powered mobile application designed to improve interactions between citizens and public institutions.

FG Launches CLHEEAN to Streamline Access to Government Services

It is also a civic education and community engagement app.

Developed under the National Orientation Agency (NOA), the platform functions as a virtual assistant accessible via mobile devices.

It allows users to access information on public policies, ask questions, and interact directly with government services.

The app includes features such as instant messaging, voice recognition, and multilingual support, including several local languages, to reach a wider audience.

With CLHEEAN, users can also submit feedback, report concerns, and take part in discussions on public policies. The approach is intended to strengthen citizen participation and improve communication between the government and the public.

Lanre Issa-Onilu, director general of the NOA, said the initiative addresses a long-standing gap between citizens seeking to be heard and systems that do not always respond effectively, adding that the platform marks a step toward closing that gap.

The launch comes as Nigeria continues to face challenges in citizen engagement and the dissemination of public information.

By leveraging artificial intelligence, authorities aim to make public services more accessible while improving transparency and responsiveness.

The initiative also reflects a broader trend across Africa, where governments are increasingly exploring the use of AI to modernize public services and strengthen ties with citizens.


Kindly share this post
Continue Reading

Trending