"He Wanted His Friend": Obasanjo Discloses How Abdulsalami Tried to Award $280m Deal For $3m

• Olusegun Obasanjo, the former president of Nigeria, has explained how his predecessor, Abdulsalami Abubakar, tried awarding a $280 million telecommunications deal to his friend for $3 million
• According to Obasanjo, he had to insist that the deal must be auctioned, and companies from different countries bid for it
• The former president revealed that his action further made Nigeria earn up to $1.2 billion from the telecom sector in his first term

Former President Olusegun Obasanjo recently shared an interesting story about how Nigeria almost missed out on a $280 million telecommunications deal. Apparently, when the country was transitioning from landline phones to mobile phones, some major telecom companies approached Nigeria to provide mobile lines.

However, Obasanjo alleged that General Abdulsalami Abubakar, the former military Head of State, wanted to award the contract to his friends for a mere $3 million.

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How Obasanjo auctioned telecom deal

According to Vanguard, former President Obasanjo said he suggested that the contract be auctioned to the highest bidder instead. This decision led to a $280 million sale, with MTN, Glo, and Econet (now Airtel) emerging as the top competitors. Later, Etisalat also joined the fray, paying $450 million for its license.

Obasanjo shared this story at the launch of "The Catalyst: Nigerian ICT Evolution through a Journalist's Lens," a book by Dayo Oketola, on Tuesday, September 17. He highlighted the importance of creating a conducive environment to attract investments and emphasized that Nigeria can still replicate its past successes if it demonstrates character and honesty.

His statement reads in part:

"My predecessor in office was trying to give it away, I think, to their friend for $3 million. Then we said, what we would do was to auction it. The three that came in first, I think, paid $280 million for the line. $280 million for something about to be given away for $3 million."

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How Obasanjo, Gowon formalised fuel subsidy

Legit.ng earlier reported that former military heads of state Olusegun Obasanjo and Yakubu Gowon have been blamed for institutionalising the fuel subsidy regime in Nigeria.

Niyi Akinsiju, the chairman of IMPI, said the two former heads of state introduced subsidies when the country was making large profits from oil sales.

Akinsiju then blamed the labour unions for opposing the implementation of fuel subsidies, adding that it was no longer sustainable.

Source: Legit.ng