Grace Ashiru
When Etisalat entered Nigeria’s telecom market in 2008, it brought a fresh perspective to a sector dominated by MTN Nigeria, Zain (now Airtel), and Globacom. Leveraging the young, untapped demographic, the UAE-based company partnered with Banky W to launch the famous “0809ja for Life” campaign, which resonated with the youth. This innovative marketing strategy saw Etisalat rise to become the fourth-largest operator in Nigeria.
Etisalat’s momentum extended to sponsoring Nigerian Idol and initiating the Etisalat Prize for Innovation and Literature, amassing 22.5 million subscribers by 2016 and capturing a 14% market share. However, the company’s foundation began to crumble due to limited spectrum holdings, underdeveloped fibre infrastructure, and mounting debt.
The company’s collapse started in 2016 when it defaulted on a $1.2 billion loan, largely due to naira devaluation and its inability to generate adequate revenue. With only 4,620 kilometres of fibre compared to MTN’s 39,972 km, Etisalat lacked the infrastructure to compete. A 2014 sale of 2,136 towers to IHS Towers further constrained its income streams.
Regulatory challenges compounded its woes, with operators fearing penalties like the Nigerian Communications Commission’s ₦1.04 trillion fine against MTN in 2015 for unregistered SIMs. Etisalat’s parent company exited in 2017, relinquishing its 85% stake and forcing a rebrand to 9mobile.
Rebranding to 9mobile was intended to mark a fresh start. However, unresolved debts and leadership crises plagued the company. The departure of Huawei, which managed its network operations, worsened service quality. Between 2016 and 2023, 9mobile lost 8.6 million subscribers, with an additional 10.4 million removed in 2024 due to the NCC’s audit of unregistered SIMs. By late 2024, 9mobile’s market share had dwindled to 2.1%.
Efforts to revive the company through leadership changes and new services like the 9PSB payment service bank failed to deliver significant results. The restrictions on PSBs limited their scope, and competitors like MTN and Airtel quickly outpaced 9mobile in financial services.
In June 2023, LightHouse Telecoms acquired 9mobile for $750 million, raising hopes for a turnaround. However, challenges such as infrastructure deficits and declining subscriber numbers persist. With an annual revenue per user (ARPU) of ₦1,616, 9mobile’s income is insufficient to recoup investment capital. Additionally, the company’s reliance on outdated microwave links instead of extensive fibre infrastructure hinders urban operations.
Leadership changes in 2023 included the appointment of Obafemi Banigbe as CEO and Ayodeji Adedeji as Chief Technical and Information Officer. Plans for roaming partnerships with MTN and Airtel signal a strategy to expand coverage without heavy infrastructure investments.
Despite its struggles, 9mobile has opportunities to recover. The company must leverage its enterprise customers, rebuild its infrastructure, and resolve operational inefficiencies. Industry experts suggest that 9mobile’s brand and existing assets offer potential for growth if adequately harnessed.
The success of 9mobile’s new ownership depends on innovative strategies, financial investments, and effective leadership. While the company’s revival remains uncertain, the Nigerian telecom market continues to watch for signs of a possible comeback.
