Nigeria’s $200 million National Rural Telephony Project (NRTP) will commence April this year after final confirmation from the federal executive council (FEC) to hand over the project to operators, Director of posts and telecommunications at the Nigeria’s ICT Ministry, Engr. John Ayodele has said.
“Every necessary approval for the conclusion of the transaction between the ministry and the preferred bidders has been secured except the final confirmation by the federal executive council (FEC) of presidential approval, which is expected to be rectified between now and March this year,” he said.
Ayodele said the ministry has included the project in its 2014 budget of the ministry and it is awaiting budgetary approval.
“When our budget for the year is approved, all that we need to do is to get federal executive council to rectify President Goodluck Jonathan’s approval of the transaction. Once all these are done, we are looking at handing over the networks to the preferred bidders by April this year,” he explained.
The $200 million National Rural Telephony project was conceived in 2001 during the former President Olusegun Obasanjo’s first term in office. It was expected to cover 218 Local Government Areas (LGA) in the first phase and provide over 636,256 Code Division Multiple Access (CDMA), lines in the 774 LGAs and Federal Capital Territory (FCT) in the second phase to take telephone services to rural areas.
Since its conception 13 years ago, the project has experienced hiccups which has hindered its success over the years. Chinese companies ZTE Corporation, Huawei and Shagai Bell were initially awarded the contract at the sum of $200 million, but government cancelled the tender after they failed to deliver the first phase of the project at an agreed period, only building exchanges.
The project was later transferred to five indigenous telecommunications companies: Key Communications Limited, Suburban Broadband Limited, Voicewares Network Limited, Gicell Wireless Limited and Hezonic to build, maintain and operate the project in different zones under the Lease , Operate and Own framework. However, they also failed, due to lack of funds.
