Plans to sell off Nigeria's state-run telecoms company have been suspended, reports have said.

President Olusegun Obasanjo ordered the sale of Nitel to be halted until "a realistic privatisation agenda is put in place", French news agency AFP quoted Communications Minister Bello Mohammed as saying.

The report comes weeks after a deal to sell 51% of Nitel collapsed.

The intended buyer - International Investors London, a group led by Nigerian banks and senior politicians - had failed to come up with the $1.2bn balance of its bid.

Revival

While the sale was going ahead, Nitel was supervised by the government-appointed privatisation agency, Bureau of Public Enterprises, through an interim board.

The minister announced the dismissal of the board, but did not comment on a plan to invite a foreign management group to run the company.

Nigeria is selling off a number of state-run companies in an effort to boost competition and bring foreign capital into the country.

Since the Nitel deal collapsed, Nigeria has been trying to find a way to revive its privatisation programme.

It has also been looking for new ways to support the development of the country's meagre telecoms network.

Although Nigeria is Africa's most populous nation, with a population of more than 110 million, fewer than one in 250 people have telephones.