Sylvia Duruson
Nigerian mobile operator 9Mobile has announced a significant change in its ownership structure. The company, formerly known as Emerging Markets Telecommunication Services Limited, has sold a 95.5% stake to UK-based LH Telecommunication Ltd. This transaction marks a new chapter for the telecom provider, which has faced challenges in recent years.
The deal received necessary approvals from key regulatory bodies, including the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission. These approvals paved the way for a new board to take control of the operator.
While the financial details remain undisclosed, the agreement involves LH Telecommunication acquiring the majority of 9Mobile’s shares in exchange for fresh capital injection. This move is expected to provide the struggling operator with much-needed financial resources and stability.
The African Export-Import Bank (AFREXIM), a major lender to 9Mobile, approved the investment in May 2023. This approval facilitated the change in control through the issuance of new shares, signaling confidence in the operator’s future prospects.
As part of this transition, a new board has been appointed to lead 9Mobile. Thomas Etuh, founder of the Tak Group of Companies and former chairman of Unity Bank, will chair the board. The leadership team also includes former Nigerian Senator Daisy Ehanire Danjuma and several prominent business executives.
Obafemi Banigbe, who was recently appointed as 9Mobile’s CEO, will continue in his role to guide the company through this transition phase. Banigbe brings valuable experience from his previous management positions at companies such as Ericsson, Millicom, and Airtel Nigeria.
The board has also approved the appointments of John Vasikiran as COO and Abolaji Idowu as CFO, further strengthening the company’s executive team.
This ownership change comes at a crucial time for 9Mobile. The operator has faced significant challenges in recent years, losing market share to competitors. As of June 2024, 9Mobile had approximately 11.3 million mobile users, making it the smallest operator in Nigeria. In contrast, market leader MTN Nigeria boasted over 83 million subscribers, followed by Airtel Nigeria with 64 million and Glo Mobile Nigeria with 62.5 million.
9Mobile’s subscriber base has declined substantially since 2015 when it had over 23 million users. This downward trend contrasts sharply with the growth experienced by its competitors during the same period.
The company’s history includes a notable transition in 2017 when UAE-based Etisalat exited the Nigerian market, transferring its 45% stake to a loan trustee. This move was precipitated by 9Mobile’s inability to repay a $1.2 billion loan it had secured in 2013 for refinancing and expansion purposes.
The intervention of Nigerian regulators in 2017 was crucial in preventing the collapse of the then-Etisalat Nigeria after failed negotiations with lenders to restructure the loan.
Industry observers anticipate that the new ownership will bring much-needed stability and increased investment to 9Mobile. These changes are expected to enhance the operator’s competitiveness in Nigeria’s dynamic telecom market.
As 9Mobile embarks on this new phase under fresh ownership and leadership, the telecom industry will be watching closely to see how the company navigates its challenges and capitalizes on opportunities in one of Africa’s largest mobile markets.
