The Nigerian Government commanded the disposal of the successor of NITEL, but the transaction remains unfulfilled - an analysis of the reasons for the delay
The Asset Management Corporation of Nigeria (AMCON) has taken the helm of NatCom Development and Investment Limited (NATCOM) following the failure of the original private investors to raise new capital. The corporation now serves as both creditor and shareholder, with a controlling stake of about 55%.
The current focus is on stabilising NATCOM as a strategic national telecoms asset, rather than a quick sale. A comprehensive evaluation of NATCOM's financial and operational health, led by Deloitte, is underway. This evaluation was necessitated by NATCOM's failure to conduct a financial audit since 2021.
The ongoing evaluation, however, has uncovered an undisclosed administrative and legal challenge, causing a delay in the initially set divestment deadline of December 2025. This technical restructuring and financial review make it unlikely that the deadline will be achieved.
NATCOM's real estate portfolio holds potential for conversion into a real estate investment trust (REIT), similar to what UPDC has established. The infrastructure assets, including 600 towers, fibre, submarine cable stakes in SAT-3, and a handful of data centres, can be leased to mobile network operators (MNOs), creating a wholesale business model in an industry increasingly reliant on shared infrastructure.
One such lease agreement already exists between NATCOM and MTN Nigeria, which secured the Nigerian Communications Commission's (NCC) approval to use NATCOM's 900MHz and 1800MHz bands to boost 3G and 4G services in 19 states. This deal was renewed in 2025 for nationwide coverage.
However, NATCOM's debt of around ₦100 billion ($66.5 million) continues to depress the company's value, deterring potential buyers. The eventual buyer will acquire a company with three distinct business pillars: the ntel network, a real estate portfolio, and infrastructure.
Soji Maurice-Diya, appointed as CEO of NATCOM in May 2025, is tasked with fast-tracking the company's long-delayed divestment. Various financial and consulting institutions have handled the sales efforts for NATCOM, but no buyer has been found yet.
AMCON is actively engaging with regulators to determine the best course of action for NATCOM. A successful sale to credible private investors could inject fresh capital and efficiency into NATCOM, revitalising its operations and potentially boosting its value.
NATCOM was established in 2015 under a $252 million "guided liquidation" process managed by the Bureau of Public Enterprises. The ntel network can be leased out for network sharing deals or roaming agreements, similar to those signed by MTN and Airtel, or between MTN and T2 (formerly 9mobile).
As the situation with NATCOM continues to evolve, AMCON's role in its management and potential divestment remains a key topic of interest in the Nigerian telecommunications industry.
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