Long-running efforts to privatise Nigeria’s state-owned operator Nitel appears to have hit another hurdle after the country’s acting president suspended the head of the body overseeing the sale. According to the Financial Times today, Goodluck Jonathan has suspended Christopher Anyanwu – head of the country’s Bureau of Public Enterprises – without giving reasons. However, sources say that the Nitel sale was a contributory factor in the suspension. It was revealed last month that a consortium known as New Generation Telecommunications had tabled a bid of US$2.5 billion for 75 percent of Nitel, which includes its mobile arm, Mtel. The surprise bid was reportedly US$1.5 billion higher than the second-highest offer and five times the valuation placed on Nitel by other potential bidders who had studied the company. The consortium is fronted by GiCell, a small local telecoms firm, and advised by BGL, a prominent Nigerian brokerage. Despite initially denying its involvement, a London-based subsidiary of China Unicom also recently confirmed that the Chinese mobile operator was involved.

The multi-billion dollar price tag has surprised many considering Nitel has been in freefall for several years. Both its fixed-line business and its mobile unit have been in decline after an earlier attempt to privatise the operator in 2006 was declared void. Mobile connections at Mtel have dropped from a high of around 1 million five years ago to just a few several thousand today amid a crowded marketplace. The operator has suffered from industrial action, equipment loss and vandalism, a chronic lack of investment and allegations of corruption.