The Nigerian government has granted another extension to the deadline earlier granted New Generation Consortium, pay the bid security for NITEL, this according to Nigerian publication, NEXT.

In October, the bid winner was asked to pay the initial bid security of $750 million within ten calendar days from the date of its receipt of a demand letter conveying its acknowledgment as winner.

But, following a request for 30 days extension to enable it mobilise funds for the transaction, the National Council on Privatization (NCP) on November 5 granted the consortium 20 days extension, which BPE spokesman, Chukwuma Nwoko, said was to help the consortium “clarify all compliance and due diligence issues and also to remit the funds into BPE’s account.”
However, contrary to expectations that the payment would be done on or before the deadline yesterday, the consortium was granted another extension till December 23 to pay up.

Director general, BPE, Bolanle Onagoruwa, said “They (New Generation Consortium) have an extension from the Presidency till 22nd of December, 2010. The issue is that the letter that they got was dated 19th of November. But, we (BPE) immediately announced the extension on the 5th of November based on a verbal approval from the vice president as the chairman of the National Council on Privatization (NCP). The formal approval did not come until the 19th of November, and they collected the letter approving the extension on the 23rd of November.

“Basically, what they (New Generation Consortium) were saying was that their bankers wanted a written confirmation, as they could not rely on verbal directives, to continue the process. That is why they wanted the extension to start counting from the 23rd of November, when they actually received the letter.

“Everybody is anxious to see the transaction come to an end, so that we can pay NITEL staff who have been pressurising for their entitlements,” Mrs. Onagoruwa said.