MIRA INFORM REPORT

 

 

Report Date :

30.01.2013

 

IDENTIFICATION DETAILS

 

Name :

AIRTEL NIGERIA LIMITED         

 

 

Formerly Known As :

VEE NETWORKS NIGERIA LIMITED

 

 

Registered Office :

90, Niger Road, Sabongari, Kano, Kano State

 

 

Country :

Nigeria

 

 

Date of Incorporation :

15.06.2009

 

 

Com. Reg. No.:

RC: 824122

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is one of the leading operators of GSM Telecommunication Services Provider

 

 

No. of Employees :

Over 5,000 (nationwide)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

nigeria - ECONOMIC OVERVIEW

 

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-11 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

 

Source : CIA

 

COMPANY NAME

 

AIRTEL NIGERIA LIMITED         

 

 

OPERATIONS

 

The company is one of the leading operators of GSM Telecommunication Services Provider in Nigeria.

 

 

COMPANY LOCATION

 

The company is located at Plot L2, Banana Island Foreshore Estate, Ikoyi, Lagos State, Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                 AIRTEL NIGERIA LIMITED       

REGISTERED NAME:                            AIRTEL NIGERIA LIMITED                                                           

PREVIOUS NAMES:                              1.  ECONET WIRELESS NIGERIA LIMITED (Till 2004)               

2. VODACOM NIGERIA LIMITED (Till June 2004)          

3.  VEE NETWORKS NIGERIA LIMITED (Till 2006)

4.  CELTEL NIGERIA

5.  ZAIN NIGERIA LIMITED                        

 

REGISTERED ADDRESS:                      90, Niger Road, Sabongari, Kano, Kano State, Nigeria

HEAD OFFICE ADDRESS:                     Plot L2, Banana Island Foreshore Estate, Ikoyi, Lagos State, Nigeria

 

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N150 to 1 US $.

 

 

SUMMARY

 

NATURE OF PREMISES:                       Owned office space approximately 2000 square meters.

DATE INCORPORATED:                        15th June, 2009

YEAR BEGAN OPERATIONS:                2009

LEGAL FORM:                                      Limited Liability Company

REGISTRATION NO:                             RC: 824122

SHARE CAPITAL:                                 1,000,000.00    

PAID-UP CAPITAL:                               1,000,000.00

STAFF STRENGHT:                              Over 5,000 (nationwide)

 

OWNERS/SHAREHOLDING STRUCTURES

 

      Names                                                                                                                   % Held

1.       Ifeanyi K. Anyaelchi                                                                                                50%

6, New Road, Sabongari, Kano, Kano State, Nigeria

 

2.       Ifeanyi S. Ibekwe                                                                                                     50%

21, Ibadan Road, Sabongari, Kano, Kano State, Nigeria

 

 

BOARD OF DIRECTORS

 

1.       Ifeanyi K. Anyaelechi

2.       Ifeanyi S. Ibekwe

 

 

MANAGEMENT TEAM

 

1.       Dr. Oba Otudeko                                    -           Chairman

2.       Mr. Segun Ogunsanya                            -           Managing Director/CEO

 

 

BACKGROUND

 

Airtel Nigeria Limited was duly incorporated in Nigeria on 15th June, 2009 with Registration Number (RC: 824122). The corporate office is located at Plot L2, Banana Island Foreshore Estate, Ikoyi, Lagos State, Nigeria. The company occupies a sky scrapper building painted grey and white with black gate and heavy security personnel.

 

Airtel Nigeria (Airtel Networks Limited), one of the  a leading mobile telecommunication services provider in Nigeria and a member of Airtel Africa Group, is committed to providing innovative, exciting, affordable and quality mobile services to Nigerians, giving them to freedom to communicate, rise above their daily challenges and drive economic and social development. The company made history on 5th August, 2011 by becoming the first telecoms operator to launch commercial GSM services in Nigeria and has scored a series of many “first” in the highly competitive Nigerian telecommunications market including the first to launch service in all the six geo-political zones in the country; first to introduce affordable recharge denominations; first to introduce monthly free SMS and first to introduce monthly airtime bonus.

 

A truly innovative company, Airtel has showed resilience, charting new paths in meeting the demands and needs of its esteemed stakeholders and enhancing distribution as well as providing affordable services to empower more Nigerians.

 

In Nigeria, Airtel is working tirelessly to live up to an ambitious vision being the most loved brand in the daily lives of Nigerians as it offers a superior brand experience and portfolio of innovative products and services ranging from exciting voice solutions to inventive data packages and mobile broadband.

 

Formerly known as Celtel Nigeria, the company was established in 2000, by a group of institutional and private investors as well as three state governments. It made history on August 5, 2001 by becoming the first telecoms operator to launch commercial GSM services in Nigeria. In 2006, following Celtel International’s acquisition of majority stake in the company, it was re-branded Celtel and became an important part of Celtel’s pan-African operations spanning 14 countries. On August 1, 2008 Celtel Nigeria was rebranded Airtel Nigeria following the global acquisition of Celtel International by Airtel Group.

 

Airtel Nigeria, which currently covers over 1500 towns and 14,000 communities across the six geopolitical zones of the country, scored a series of many other "firsts" in the highly competitive Nigerian telecommunications market including the first to introduce toll-free 24-hour customer care line-111; first to launch service in all the six geo-political zones in the country; first to introduce N500 recharge card; first to commence emergency service (Celtel 199); first to introduce monthly free SMS and first to introduce monthly airtime bonus.

 

Our investigation revealed that the current Chief Executive Officer of Airtel Nigeria was appointed on November 26, 2012. He took over from Rajan Swaroop, who has successfully led operations at Airtel Nigeria for the past two years.

 

During our visit on 23rd January, 2013, we spoke with one of the security men who took us to their head of security; he acknowledged our document but declined to provide necessary information. He disclosed that visitors without prior official appointment are not allowed to see their top management personnel. He stated that as a security officer, he cannot divulge any information to us but promised to forward our document to the appropriate authority who will get back to us in due course.

 

Conclusion: Based on our visit and brief discussion with the head of security, people moving in and out also confirmed that Airtel occupies the building; we are of the opinion that the company is a legal entity which operates a legitimate business.  As such, any business relationship with the company should be mutually beneficial.

 

SERVICES

 

 

 

EXCLUSIVE BENEFITS

 

·         International Roaming

·         Personalized account management

·         Access to view bills online (eBills)

·         International Direct Dialing (IDD) access

·         Fully itemized bills

·         Free voicemail

·         SMS with the lowest rates

·         Payment in arrears

·         Flexible credit limit options

·         Real time usage checking

·         Up-to-date free SMS balance checker

·         Access to the Airtel Crisis Centre (199)

·         Conference Calling: Subscription-Free

·         Call Holding, Call Waiting, Call Forwarding and Call Barring

·         Easy to use services that ensure the best use of your time and enhance your businessConnection to Nigeria's clearest, most reliable and fastest growing mobile phone network.

·         Payment of bills easily and conveniently with Airtel Nigeria's Direct Debit product, or at any Airtel Centre or designated Bank.

 

BUSINESS PLANS

 

·         Airtel Mybusiness

·         Business Plans

·         How to sign up

·         Other Features

·         Tariffs

·         Corporate Bills

·         Electronic Forms

·         Airtel Corporate Package

 

 

PERSONAL PLANS

 

·         2 good classic

·         Smartbytes

·         Padis

·         Big Family Plus

·         Airtel Conferencing Service

·         Quick Talk Voucher

·         Airtel Club Business

·         Airtel Steady! Steady!

·         Club10 Hook

·         Airtel Club 10

·         Airtel StepUP

·         2good Time

·         My Airtel My Offer

·         Airtel 2SIM

·         Airtel 2Good Prepaid

·         Airtel Rewardz

·         Airtel Big Family Xtra

 

 

MOBILE INTERNET

 

·         Airtel ValuMax

·         Airtel KoolMax

 

 

VALUE ADDED BENEFITS

 

 

 

BRAND VALUES

 

·         Radiance

·         Heart

·         Belonging

·         Brand promise

·         Logo

 

 

TRADE REFERENCES

 

The company has both local and international references

 

 

PAYMENT REFERENCES

 

The company has both local and international references

VISION

 

To combine value creation and internal growth from existing operations with aggressive expansion into new geographies

 

MISSION

 

To be the leading mobile telecoms operator that provides world class services to its customers wherever they are.

 

TYPES OF CUSTOMERS

 

 

·         Corporate organizations

·         Governments Agencies

·         Educational Institutions

·         Financial Institutions

·         IT Companies

·         Individuals

·         General Public etc.

 

 

PERFORMANCE RANKING

 

* Quality of Management:          GOOD

* Ethics & Integrity:                     GOOD

* Ownership Structure:               GOOD

 

FINANCES

 

The company’s Audited Accounts was not available as at the time of compiling this report. However, we advise that the maximum credit limit to be accorded to the company could be put at 5.000,000million US dollars ($5m USD). This opinion is as a result of the company’s performance in the telecommunication industry in Nigeria and also, it is among the top major fast growing companies in Africa.


 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

The company is operating in an industry with very great potentials. The telecommunication Services sector of the Nigeria economy has a lot to explore when it comes to the need for expansion, improvement of product quality, work force development and general technical expertise. Mainly private individuals dominate this sector. Despite the huge capital required for setting up this investment, it has grown in its leaps and bound over the decades in the nation. Although, the efforts of the Federal Government cannot be ruled out. The Government has put in place different policies that support private individuals to secure loans/ mortgages from banks and other financial institutions. However, to record a groundbreaking record in this sector, foreign investors are inevitable. They facilitate the importation of high-tech equipment, which will boost quality production and efficient communication. 

 

This sector of the economy has great potentials for intending investors.

 

 

CMT REPORT

 

(Corruption, Money Laundering & Terrorism)

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs Administration and Control (NAFDAC), Independent Corrupt Practices and other related offences Commission (ICPC) Etc.

 

No negative information on subject from the above agencies.

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on the company, our investigations revealed that Airtel Nigeria is duly registered in Nigeria with a registered address located at 90, Niger Road, Sabongari, Kano, Kano State, Nigeria, while its operational address is located at Plot L2, Banana Island Foreshore Estate, Ikoyi, Lagos State, Nigeria and several offices nationwide.

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.70

UK Pound

1

Rs.84.35

Euro

1

Rs.72.21

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.