THE Bureau of Public Enterprises (BPE), government's privatisation agency primarily responsible for selling off state-owned enterprises (SOEs) has had a mixed result since the privatisation exercise started. But surprisingly, it has not been able to dispose off the Nigerian Telecommunications Plc (NITEL). Surely, a lot of experiences had been gained in previous sales attempts to ensure a smooth exercise? But the devil, as always, is in the details.

Nitel, like the proverbial abiku, has refused to be sold due to a number of reasons that are beyond the control of the BPE.The company had a lot to attract it to potential investors. It is the biggest telecommunications outfit in Nigeria, with the largest potential market in Africa. In addition to this, Nigeria needs a strong Nitel because of its number one position in the nation's telecommunications industry. This industry is itself crucial to Nigeria's economic growth and political survival. A lot of studies have been done, and quite a lot written and said about the economic impact of telecommunications on a nation's economy.

The coming of private telecommunications operators has not only opened up the sector, but has equally helped generate billions of naira in the country's economy.A privatised and fully operational Nitel is expected to generate ten of thousands of jobs in the country, and reduce telephone and Internet charges in the country.Nitel is, however, fast becoming something of a nightmare to both the country and those saddled with the task of selling it off, because of the several highs and lows that greeted news of its impending sale and the subsequent failure to do so. Nitel has seen its image slump from being poster child of the privatisation exercise to that of an unwanted orphan, a situation that would interest the best of tragedy-comedy writers, full as it were, with drama, ego and incompetence.

It is evident that if Nitel would ever be sold in any meaningful deal, the time to do so is now.The first attempted sale was stunning in its scope, with the ill-fated bid by Investors International Limited (IIL) expected to bring in $1.317billion. The bid failed spectacularly, leaving eggs on the faces of all concerned and careers in tatters.Then there was the now much vilified concession granted Pentascope International to manage the company. This not only drained the company of its store of financial resources, it also left it reeling in depleted confidence. It now appears the company has the kiss of death, something the now rejected bid of $256.53million from Orascom Telecom appears to confirm.

Little wonder that the value of the company has continued to drop in relation to the time it is taking to sell it off. The reasons for this are many, including the apparent disillusion of its staff who are understandably unsure of their future and the almost non-existent infusion of cash to upgrade its performance because of the clouds hovering over it.Already, Nitel's poor technology means that's its mobile affiliate, Mtel, can only use 45 per cent of its base stations; while it also inhibits the roll-out of other providers that depend on its fixed link, adding costs and affecting reliability.Yet, there are suggestions for a new round of competitive bidding for the company. What indeed could this achieve?

THE Bureau of Public Enterprises (BPE), government's privatisation agency primarily responsible for selling off state-owned enterprises (SOEs) has had a mixed result since the privatisation exercise started. But surprisingly, it has not been able to dispose off the Nigerian Telecommunications Plc (NITEL). Surely, a lot of experiences had been gained in previous sales attempts to ensure a smooth exercise? But the devil, as always, is in the details.

Nitel, like the proverbial abiku, has refused to be sold due to a number of reasons that are beyond the control of the BPE.The company had a lot to attract it to potential investors. It is the biggest telecommunications outfit in Nigeria, with the largest potential market in Africa. In addition to this, Nigeria needs a strong Nitel because of its number one position in the nation's telecommunications industry. This industry is itself crucial to Nigeria's economic growth and political survival. A lot of studies have been done, and quite a lot written and said about the economic impact of telecommunications on a nation's economy.

The coming of private telecommunications operators has not only opened up the sector, but has equally helped generate billions of naira in the country's economy.A privatised and fully operational Nitel is expected to generate ten of thousands of jobs in the country, and reduce telephone and Internet charges in the country.Nitel is, however, fast becoming something of a nightmare to both the country and those saddled with the task of selling it off, because of the several highs and lows that greeted news of its impending sale and the subsequent failure to do so. Nitel has seen its image slump from being poster child of the privatisation exercise to that of an unwanted orphan, a situation that would interest the best of tragedy-comedy writers, full as it were, with drama, ego and incompetence.

It is evident that if Nitel would ever be sold in any meaningful deal, the time to do so is now.The first attempted sale was stunning in its scope, with the ill-fated bid by Investors International Limited (IIL) expected to bring in $1.317billion. The bid failed spectacularly, leaving eggs on the faces of all concerned and careers in tatters.Then there was the now much vilified concession granted Pentascope International to manage the company. This not only drained the company of its store of financial resources, it also left it reeling in depleted confidence. It now appears the company has the kiss of death, something the now rejected bid of $256.53million from Orascom Telecom appears to confirm.