(Ecofin Agency) – 9mobile is the fourth Nigerian telecoms operator in terms of number of subscribers. The company saw its fleet drop from 21.1 million in December 2014 to 3.38 million in October 2024, a drop of around 84%.
Nigerian mobile phone company Emerging Markets Telecommunication Services (EMTS), operating under the brand 9mobile, will need to invest $3 billion in its operations over the next four years to strengthen its competitiveness in the national telecoms market. This was revealed by Femi Gbanigbe, Managing Director of the company, during a virtual press conference on Saturday, January 4, attended by local media The Guardian.
These investments should enable the company to “compete favorably, as […] previously, and as required by the traditional telecom model”. The company intends in particular to correct its shortcomings in network coverage (2G, 3G and 4G), where it comes in last position compared to its subscribers. To achieve this, it intends to build infrastructure where it is necessary and share it when possible.
9mobile management acknowledges that there have been no major investments in the company over the past eight years. This weakened the company’s position in the market. For example, data from the Nigerian Communications Commission (NCC) shows that the company had 21.1 million mobile subscribers as of December 2014 for a market share of 15%, compared to MTN’s 44%, 21%. for Glo and 20% for Airtel. In October 2024, the company found itself at 3.38 million subscribers for a market share of 2.15%. MTN, Glo and Airtel hold market shares of 51.09%, 12.15% and 34.61% respectively.
In the meantime, EMTS came under the ownership of the British LH Telecommunication Limited. Femi Gbanigbe is optimistic about the capacity of the new investor to mobilize the necessary funds to achieve the objectives set by the company. However, he believes that the real challenge lies in the guarantee of reimbursement and the duration necessary to ensure this reimbursement.
“I cannot go to the market to borrow money, even in local currency, because I would have to pay an interest rate of around 30%. So my problem is not necessarily finding capital. My problem is how much of this capital I want to consume and invest, knowing that I also have the responsibility to repay the invested capital in a shorter period of time”, he added.
Isaac K. Kassouwi
Published by Sèna DB de Sodji
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07/17/2023 – Nigeria: 9mobile is interested in 5G
04/20/2023 – Nigeria: 9mobile invests $152.3 million in the modernization and expansion of its network
