It was supposed to be a simple deal for the Nigerian government, but after two companies have bailed on their planned purchase of the state-owned Nitel telecom operator, confusion has taken over the possible sale. Analysts believe the sale has been delayed, abandoned and ultimately put on the back burner because of poor handling on the government's end. “We have seen the government not really do a proper job in getting this deal done and this is really creating turmoil within the sector across Nigeria because if the government can't get this deal finished then it hurts future investment in the country,” said John Mbadi, a former communications ministry official. He told Bikyamasr.com/IT News Africa that “the government better get its act together or the entire sector will face setbacks in the coming months and years as a result.” The sale of Nitel, Nigeria's incumbent telecom operator began its turmoil following the failure by Omen International Consortium to pay its $105 million bid security to the Bureau of Public Enterprise. The failure by the British Virgin Islands based consortium leaves the Bureau of Public Enterprise (BPE), the body that is responsible for overseeing the sale, at an impasse on how to proceed with the privatization of the company following several failed attempts. Omen becomes the second bidder to back out of Nitel's sale bid in less than four months. Another consortium, the New Generation Consortium — consisting of China Unicom, China's second largest carrier — backed out after failing to pay bid price of $2.5 billion for a 75 percent stake in Nitel. Omen was in February this year declared reserved bidder with an offer price of $956 million. BM
