Nigeria's 9Mobile sells majority stake to LH Telecommunication

Nigerian mobile operator 9Mobile (Emerging Markets Telecommunication Services Limited) has sold a 95.5% stake in the company to UK-based LH Telecommunication Ltd.

The Nigerian operator announced the news on Sunday, saying it had successfully completed the equity investment by LH Telecommunication following approvals from the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission, which allows a new board to take over the struggling operator.

LH Telecommunication is acquiring 95.5% of 9Mobile's shares in exchange for fresh capital. The financial terms of the deal were not disclosed.

9Mobile's board of directors said the investment was approved by the African Export-Import Bank (AFREXIM), a major lender to 9Mobile, in May 2023, which has allowed the change in control through the issuance of new shares.

New board leadership

The new board will be chaired by Thomas Etuh, founder of the Tak Group of Companies and former chairman of Unity Bank.

The board also includes former Nigerian Senator Daisy Ehanire Danjuma as well as prominent business executives Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, Nahim Abe Ibraheem, Femi Edun and Emmanuel Etuh.

Obafemi Banigbe was appointed as 9Mobile CEO a few weeks ago and will stay on as MD and CEO to lead the company through its transition phase.

He previously held management roles at Ericsson, Millicom Ghana, Millicom International Cellular Tanzania, Celtel (now known as Airtel Nigeria) and TV Anywhere Africa.

The board also approved the appointment of John Vasikiran as the company's COO and Abolaji Idowu as CFO.

Challenges and growth prospects

Pundits expect the new ownership to bring stability and increased investment for 9Mobile, enabling it to compete better in Nigeria's telecom market.

9Mobile is the smallest operator in Nigeria with around 11.3 million mobile users at the end of June 2024, according to statistics from market research company Omdia, a sister company of Connecting Africa.

In comparison, leading operator MTN Nigeria had over 83 million mobile subscribers, Airtel Nigeria had 64 million, and Glo Mobile Nigeria had 62.5 million at the end of June.

Omdia data shows that in 2015, 9Mobile had over 23 million mobile users in Nigeria but has been losing market share over the years, while MTN, Airtel and Glo have continued to grow.

9Mobile is Nigeria's smallest operator out of four, with around 11.3 million mobile users at the end of June 2024. (Source: natanaelginting on Freepik)

9Mobile was previously Etisalat Nigeria, but the UAE-based operator exited the Nigerian market in 2017 and transferred its 45% stake to a loan trustee.

According to Reuters, Nigerian regulators intervened back in 2017 to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2 billion loan failed.

Etisalat Nigeria signed the medium-term facility with 13 Nigerian banks in 2013, which it used to refinance an existing $650 million loan and fund expansion, but it could not repay the loan four years later.

*Top image source: senivpetro on Freepik.

— Paula Gilbert, Editor, Connecting Africa