Transcorp Clears NITEL's N585m Cable Debt

Transnational Corporation (Transcorp), core investors in Nigerian Telecommunications (NITEL) has settled the $4.5 million (N585 million) debt owed the international under-sea multi purpose cable system usually referred to as SAT3 cable by NITEL.

The debt was cleared through a shareholder loan. The SAT-3 cable connects the United Kingdom through the West African coastline, South Africa and the Far East and ended in Nigeria. According to a statement signed by TransCorp’s Deputy General Manager (Corporate Communications), Bala Ibrahim Abdulkadir on Monday in Abuja, the debt piled up over the years due to NITEL's inability to meet traffic charges.

He noted that the SAT-3 consortium had threatened to cut-off traffic to and from Nigeria if NITEL failed to pay up, adding that this would have had a negative impact on the company's business and on Nigeria's corporate image.

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