9Mobile secures buyer and new CEO

Details: Manny Pham; Category: Operators; 31 July 2024; 11534 views

Struggling Nigerian operator 9Mobile reportedly secured a UK-based buyer after years of rumours surrounding a buyout.

Local media reported LH Telecoms, a company registered in the UK, has apparently acquired 95.5% of shares in the operator.

The African Export Import Bank was the senior lender that approved the investment in May 2023. Now, the operator requires final regulatory approval from the Nigerian Communications Commission and the Federal Competition and Consumer Protection commission.

LH Telecom has appointed a new board and Obafemi Banigbe as the new CEO of 9Mobile. Banigbe held senior executive roles at Airtel Nigeria and Millicom.

9Mobile struggled since 2017 when parent company Etisalat (now e&) terminated a management agreement with its Nigerian arm to start phasing itself out of Nigeria. Etisalat had a 45% stake in its former Nigerian unit.

At the time Nigeria had suffered foreign currency shortages, particularly the US dollar, to enable its economy to acquire necessities to maintain the economy.

Etisalat Nigeria suffered under this shortage as it struggled for four years to repay a total US1.2 billion to 13 local lenders taken out in 2013.

The Nigerian Communications Commission stated 9Mobile only has 6% market share with 13.7 million subscribers, out of the 221 million base in Nigeria. It contends with the likes of MTN, Airtel and Glo Mobile.