The fourth-largest telecom provider in Nigeria, 9mobile, needs to invest almost $3 billion (₦4.8 trillion) over the next four years to improve service quality and modernise its network infrastructure.
Over the past ten years, the company has experienced a lack of substantial investment, which has resulted in deteriorating service and a drop in the number of subscribers, CEO Obafemi Banigbe emphasised.
The UK-based LH Telecoms Limited purchased a 95.5% share in 9mobile in 2024, bringing in new funding and hiring a new management group to breathe new life into the business.
Notwithstanding these changes, 9mobile’s market share has decreased; its subscriber base has decreased from over 13 million to about 3.4 million, or 2.15% of the total.
For 9mobile to successfully compete with other significant companies in Nigeria’s telecom market and to take advantage of the nation’s expanding digital economy, the proposed $3 billion investment is considered necessary.
Securing the required funds is hampered by issues like high local interest rates, which hover around 30%. The business is looking into ways to guarantee a return on investment in a fair amount of time.
In the first quarter of 2024, 9mobile accounted for 72% of all 9,000 porting activities, according to the Nigerian Communications Commission (NCC), showing a high rate of subscriber turnover.
Effective capital deployment, competitive service offers, and the capacity to win back customer trust in a fiercely competitive market are all necessary for 9mobile’s revitalisation efforts to be successful.
