Nigeria’s smallest telecom operator by subscriber base, 9mobile, must secure fresh capital to revitalise its operations and reverse declining market share.
With fewer than four million active users as of September, the company’s subscriber base has plummeted from over 22 million in 2015, according to the Nigerian Communications Commission.
The President, National Association of Telecommunications Subscribers, Deolu Ogunbanjo, said a strategic investment is critical for 9mobile to regain its position in an increasingly competitive market.
“9mobile needs to recapitalise. They should go to the market, possibly the stock exchange, to attract new investments,” Ogunbanjo said.
“Going public would allow investors to put their money in, which in turn would ensure the stability of the company,” he added.
9mobile, originally launched as Etisalat Nigeria in 2008, underwent a rebranding in 2017 after its parent company, Etisalat UAE, withdrew due to financial difficulties.
This rebrand came after a $1.2bn debt crisis, with the aim of keeping the company afloat.
In July, 9mobile was acquired by LH Telecommunications, marking a potential turning point as the company seeks to regain its footing in Nigeria’s competitive telecom market.
However, recent developments are concerning: in September, 9mobile experienced significant subscriber churn, with 7,127 users porting out to other networks.
This represented 90 per cent of the 7,886 total outgoing ports recorded for the month.
The remaining 10 per cent was shared among other network operators, including MTN, Airtel, and Globacom.
Ogunbanjo warned that without recapitalization, 9mobile could see its subscriber base shrink even further.
“If they don’t take steps to recapitalize, they may see their subscribers reduce drastically—possibly even down to just 1 million,” Ogunbanjo cautioned.
He believes that securing fresh capital will allow 9mobile to invest in vital infrastructure and improve service quality.
“With more capital, they can invest in better infrastructure, like radio equipment for their masts, and improve service quality. When service improves, subscribers will return,” he added.
