The Board of Directors of Emerging Markets Telecommunication Services Limited, trading as 9mobile, has categorically denied reports suggesting that the company has been ordered by a court to pay a N55 billion debt to Keystone Bank.
In a statement released on Saturday, 9mobile clarified that it is not involved in any legal dispute related to the alleged debt. The controversy pertains solely to its minority shareholder, Teleology Nigeria Limited.
According to 9mobile, recent media reports, dated Friday, July 19, 2024, incorrectly suggested that a Federal High Court in Ikoyi, Lagos, had issued a judgment against 9mobile for the repayment of the debt.
However, the telecommunications company emphasized that it was not a party to the legal proceedings and was not affected by the court order.
“The Management of 9mobile wishes to inform the concerned public and critical stakeholders that, contrary to these misleading reports, Emerging Markets Telecommunication Services Limited, trading as 9mobile, was neither a party to any suit nor affected by the order reportedly made against it,” the statement read.
The legal dispute involves Teleology Nigeria Limited, which reportedly failed to meet the terms of a loan from Keystone Bank, intended for financing the acquisition of assets in 9mobile.
Keystone Bank’s counsel, Bode Olanipekun, SAN, claimed that despite offers to restructure the loan, Teleology did not comply with the conditions. The situation reportedly escalated when PAC Ltd. proposed converting the debt into equity, with no immediate repayment.
9mobile strongly refuted the claims that it was implicated in the case, describing the reports as “false and maliciously misleading.”
The company pointed out that the lawsuit was correctly filed as “Keystone Bank v. Teleology Nigeria Limited,” and not against 9mobile.
The telecommunications company also highlighted that it is under new ownership, with a 95.5 per cent controlling stake, and thus not liable for the actions of its minority shareholder.
9mobile assured stakeholders that it is undergoing a business transformation program aimed at reclaiming its market position.
Teleology Holdings acquired 9mobile, formerly known as Etisalat Nigeria, in November 2018.
However, the acquisition faced challenges, including Teleology’s withdrawal from the project shortly after the acquisition due to operational difficulties and dissatisfaction with its local partnership.
This clarification comes as 9mobile seeks to distance itself from ongoing financial and legal issues associated with its previous minority shareholder, aiming to focus on its business revitalization and market presence.
Meanwhile, Nigerian mobile payment company Paga has urged the Nigerian Communications Commission to reconsider its regulation on data pricing.
Founder and CEO Tayo Oviosu highlighted the challenges faced by businesses in Nigeria and emphasized the need for affordable access to data to promote digital financial services.
Oviosu noted that despite the country not being a prime destination for offshore cash, Paga has processed cash transactions valued at N14 trillion over its 15-year existence, with 80% of transactions occurring in the last five years.
