President Obasanjo is committed to reform

The sale represents Nigeria's first attempt to privatise a major state utility in the country and will provide the winner with access to Africa's largest telecoms market.

The process will be watched closely by those who have questioned the government's commitment to reform and particularly privatisation.

Jonathon Long, managing director of First City Monument Bank - Nigeria's largest bank and also an advisor to one of the bidders - told the BBC's World Business Report that the government is serious in pursuing the privatisation of Nitel despite opposition from vested interests.

Under developed market

Nigeria is probably the most under serviced telecoms market in the world. The dilapidated network provides a population of 110 million with less than one line for every 250 people.

Whoever wins control of Nitel will commit to install two million new lines in Nigeria over the next three years.

But the jewel in the crown for any bidder is the GSM license which Nitel holds.

Nitel is one of three companies licensed to operate GSM services which have huge potential in a country with limited telecommunications services.

"It is predicted that within the next five years there will be between six and 10 million mobile subscribers in Nigeria," says Dave Imoko, Public Affairs manager of the Nigerian Communication Commission.

The bidders

The consortia involved in the bidding are not the big, major league players in global telecoms.

The Investors International Consortium includes both Portugal Telecom and KPN Telecom.

Detecom, which is Deutsche Telekom's consulting company, is part of the Newtel consortium and Korea Telenkon would manage the Telenet consortium if successful.