Nigeria’s fourth-largest telecom operator, 9mobile has secured a $230 million-dollar loan from Africa Finance Corporation (AFC). The fund will be used to scale its dwindling growth and offset its existing debt in Nigeria.
It could be recalled that 9mobile, formerly referred to as Etisalat Nigeria, operated under Etisalat UAE – an Emirati company based in Abu Dhabi.
The company defaulted on repaying its loan obligation of $1.3 billion to a group of thirteen Nigeria banks in 2017. This led to the exit of Etisalat UAE, the mother body, from the Nigerian market. It also led to a transfer to the Emerging Market Telecommunication Services Ltd EMTS, as the new board and management.
See also: NCC Fines Airtel & 9mobile for Quality of Service Violation
AFC is a pan-African development financial institution that invests into other businesses via debt and equity financing, alongside advisory services. The decision to provide the loan, according to the African Finance Corporation, was in the conviction of 9mobile’s growth and profitability over time.
Speaking on the approval, the 9mobile’s board chairman, Mr. Ado Bayero said the company’s innovative strides in the Nigerian telecommunication sector has spurred support from the AFC.
Bayero also assured that the company will continue to grow actively while increasing its network capacity. They will invest the fund to the development of additional value-added services to new and existing customers.
More on TechGist Africa:
- Nigeria-based GIG Logistics Launches in Ghana
- Uganda boosts Security with Huawei’s AI Facial Recognition Surveillance System
- Egypt Set to enforce Tax on Social Media Ads & Digital Services
- Nigeria-based Cars45 rolls out Premium Inspection Service
- San Francisco-based Kiva partners Sierra Leone Government to Launch Digital Credit Database
