Posted by Everest Amaefule, Abuja on
The Nigerian Telecommunications Limited lost N16.3billion in the year ended December 31, 2004, the company's annual accounts for 2004 have revealed.
The Nigerian Telecommunications Limited lost N16.3billion in the year ended December 31, 2004, the company's annual accounts for 2004 have revealed.
This brings to N35.84billion the losses recorded by the first national telecoms operator in two consecutive years - 2003 and 2004.
Incidentally, the losses were made at a time when the MTN Nigeria Communications Limited, which operates only a GSM network, recorded a profit of N65billion.
NITEL's losses were mostly made when a management contractor, Pentascope International of the Netherlands, was in the saddle at the telecoms firm.
The losses over the two-year period were preceded by a profit of N8.5billion in the 2002 accounting year.
The Federal Government sacked the Pentascope management led by Mr. Rein Zwolsman in February, this year.
The company's audited account for 2004, which was obtained by our correspondent, attributed the loss to increasing competition from mobile operators and dwindling resources to expand the network.
The report said, 'After a period of decreasing revenues due to aggressive competition from mobile operators and lack of resources, NITEL has succeeded in re-establishing a base for strongly increased revenue in 2004, and is now positioned to take advantage of opportunities in the Nigerian telecoms market.
'The company is still loss-making, highlighting the need for improved operations and the potential up-side for an experienced international telecoms operator and associated investors."
The situation at the mobile subsidiary of NITEL, the Nigerian Mobile Telecommunications Limited, was however different.
Although the company recorded losses of N2.55billion and N3.48billion in 2002 and 2003 respectively, it made N2.44billion profit in 2004.
The profitable period in M-Tel coincided with the expansion of the network to a capacity of a little over one million subscribers.
Already, the National Council on Privatisation has offered 51 per cent of the Federal Government's shares in Nitel for sale to private investors.
This is part of the government's move to free public enterprises from its control and make them profit-driven.
Six companies have already been short listed to participate in bidding for the NITEL. These are MTN Nigeria Communications Limited, Telkom/Vodacom Consortium, Huawei/Jacuz Consortium, Orascom, Celtel International B.V. and Newtel International.
The PUNCH, Monday, October 17, 2005