Experts blame government for NITEL’s woes

Experts in the telecommunications sector have blamed the federal government for mismanaging the privatisation of Nigerian Telecommunications Limited.

At the launching of a new book, ‘The Story of NITEL’, Saturday, several analysts condemned the manner in which the sale of the nation’s principal telecommunications company has been handled.

Aaron Ukodie, the author of the book, said: “In the case of NITEL there were too many interferences as government was interfering with the management and as such the management lacked consistence in running NITEL. Until the federal government steps aside from the running of NITEL, the telecom firm would not function at all to compete with other major operators.”

Mr. Ukodie said similar privatisations in Britain and America have heralded an exemplary management structure which the federal government should emulate.

“Government should let management run the NITEL based on the infrastructures that can function. Government companies operate well if the right structures and funding are put in place.”

He explains his motivations: “I have tried to document the issues of NITEL from 1985 to date for Nigerians to look into these issues and place them in perspective and come up with ideas that would benefit the running of NITEL.”

Mismanagement

From 1985 to date the telecom company has been managed by over 17 chief executive officers including Patrick Uchidiuno, Augustine Otiji, Bubu Bajoga, Abubakar Nahuche and Zainab Sa’ad, presently the acting managing director of the Ngeria Telecommunication limited.

Chris Uwaje, the president of Institute of Software Practitioners of Nigeria complained that previous management were mostly interested in makiing themslves rich.

“The federal government must ensure that such misconducts of ownership are not repeated and must now place NITEL into the hands of credible investors with experience in running such a sector. The past management of NITEL are now richer than NITEL itself” he said.

In August, 2009 the federal government mandated the Bureau of Public Enterprise to sell off the communications company within sixty days. The deadline, which passed on November 17, 2009, was never met. A NEXT interview with the Bureau at the time revealed that they were being careful with their choice of investors and would not be rushed into selling.

Chigbo Anichebe, the spokesperson for the bureau, said: “The mismanagement of NITEL is the reason why we are privatising. Through privatisation, government would cut off its interference from the way NITEL would operate; the private companies have said that they can do better, so we are giving them the chance to make NITEL work.”

He also explained that, “Because the past management were using NITEL to get rich, we want to stop them. When Transcorp were running NITEL, they could not manage the firm as they did not have any knowledge on how to run such company.”

Since the bureau has failed to sell off the company this year, Mr. Anichebe said their major priority is to pay the company’s staff their salaries. Presently, employees are being owed over 20 month’s salary.

“We are trying to look for money to pay the NITEL workers and have as such put hold on the bidding process with the core investors,” Mr. Anichebe said.

“The National Council on Privatisation (NCP) has approved that BPE borrows money from the pension fund to pay them” he said, adding “We want to pay them five month salary which the federal government owns them. But we would pay that in split within two months,” he added.