13 Nigerian Banks To Raise $200m For Visafone

By Layi Adeloye

21st Jan 2008

Visafone, the new mobile phone company that has announced plans to roll out fully early in February 2008, has received a major push as a consortium of 13 Nigerian banks expressed its readiness to back up the firm financially.

A statement by the company on Saturday said the banks agreed to raise a sum of $200m for the project’s execution. According to the statement, the 13 banks gave the affirmation, interpreted as a vote of confidence in the project, at a syndication/business plan meeting, held on Thursday in Lagos.

The firm had earlier indicated plans to cover over 40 cities and 12 states, including the Federal Capital Territory, Abuja, by the time its operation commences next month. Banks that participated in the meeting, according to the electronic statement, included First Bank of Nigeria Plc, GTBank, Oceanic Bank, Zenith Bank, Intercontinental Bank, EcoBank, Bank PHB, Fidelity Bank, First Inland Bank, Afribank, Sterling Bank, Access, FCMB and a multi-lateral institution, Afro Financial Corporation.

A source at the business plan meeting also cited the Indo-American Managing Director of Visafone, Ninan Thomas, as making “a powerful presentation on the company’s business strategy, which would focus on quality of service, excellent clarity and wide coverage.” He said Thomas presented a demonstration of the technologically advanced handsets with 3G capability and functionality, which would grant Visafone subscribers access to the internet and their e-mails.

The handsets, produced in collaboration with world renowned handset makers like Nokia and Motorola, the company said, would be launched into the market in February 2008, when the company rolls out for full commercial operations. Other banks, which were not at the meeting, according to the statement, “have also expressed overwhelming interest in being a part of the Visafone project, based on the innovative and compelling business plan and strategy of Visafone, which also has a national spectrum covering the entire nation like the GSM companies.”

Visafone, a wholly owned Nigerian telecommunications company, has renowned banker, Jim Ovia, as founder and promoter. Industry watchers have expressed optimism in his ability to replicate the feat he has performed in the banking arena in the telecoms sector. The company received its Unified Access Service licence as a telecom operator from the Nigerian Communications Commission on August 1, 2007, and was incorporated in Nigeria on June 20, 2007, following its acquisition of Cellcom. Less than two months after its registration, Visafone was announced as the Approved Bidder for the three carriers in the 800 MHz spectrum put on auction by the NCC.

Visafone brushed off stiff competition from Multilinks, GiCell Wireless Limited and TC Africa Telecoms Network Limited to clinch the 800 MHz licence which will allow Visafone to roll out commercially across Nigeria.
According to the statement, “Visafone aims to become the pre-eminent and preferred telecom operator in Nigeria by offering seamless and efficient services that will ensure the best clarity and the widest coverage.

“The company will offer an exciting bouquet of superior services that include the very best of Voice, High Speed Data EVDO (3G), internet and other innovative value added services to individual subscribers, while also providing unequalled business solutions to large corporate bodies as well as the Small and Medium Scale Enterprises in Nigeria.”

Source: Punch

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