Dubai – Mubasher: Chairman of Etisalat Nigeria Hakeem Belo-Osagie has resigned on the back of the failure in renegotiating a $1.2 billion loan the company had obtained from 13 banks four years ago, Reuters reported, citing two sources.

"The biggest mistake the company made was taking a loan in [US] dollars," one of the sources told Reuters.

"Hakeem had been negotiating hard ... but ... it wasn't the optimal solution so he had to resign," the agency quoted a source as saying.

Abu Dhabi-based Mubadala Investment Company had pulled out of its 40% stake in Etisalat Nigeria in June after the company failed reaching an agreement with the Nigerian banks, according to a statement by the central bank.

The loan was a seven-year facility to fund the expansion of the company’s network and refinance a $650 million loan, Reuters reported, adding that the value of the loan had been “bloated” after the Nigerian naira witnessed severe drops, causing Etisalat to miss payments.

The company had in 2015 restructured the business, cut down on jobs, and sold its towers to mobile phone tower manager IHS Towers before leasing them back, but to no avail.

“Nigerian regulators have said they want to protect Etisalat's 4,000 workers and would hold talks with lenders and IHS Towers, as well as other suppliers,” Reuters stated.

Etisalat Nigeria acquires a 14% market share in the Nigerian mobile market, preceded by South African firm MTN with 47%, Globacom with 20%, and Airtel with 19%.