UK-Based Telecoms Company Acquires Majority Stake In Troubled 9Mobile

9Mobile, Nigeria’s embattled telecommunications company, has undergone significant changes with the acquisition of a majority stake by a UK-based firm. This move comes with appointing a new board of directors and a fresh leadership team.

Obafemi Banigbe has been appointed as the new managing director and CEO, while Thomas Etuh has been named Chairman of the Board. Etuh, the Tak Group of Companies founder, brings over 36 years of experience in telecommunications, agriculture, and banking. He has previously served on Unity Bank Plc and Notore Chemicals Industries Plc boards.

The new board members include Nahim Abe Ibraheem, Femi Edun, Senator Daisy Ehanire Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma and Emmanuel Etuh.

According to 9Mobile, the new leadership team is expected to steer the company through its transition and recovery, aiming to enhance its market position.

This development comes after news nine months ago that MTN Nigeria was in talks with 9Mobile about acquiring spectrum. At the time, there was suspicion that the purchase would result in MTN acquiring 9Mobile, prompting fears about a possible telecommunications monopoly.

The spectrum deal was seen as a strategic effort to rescue 9Mobile, which has been struggling after the departure of key technical partners and investors. However, the National Association of Telecoms Subscribers (NATCOMS) urged the Nigerian Communications Commission (NCC) to prevent MTN from acquiring 9Mobile, citing concerns about creating an oligopoly in the telecom sector.

Additionally, the company faced significant subscriber losses in the first quarter of 2024, shedding 6,443 subscribers, which accounted for 72% of the total 9,000 porting activities reported by the NCC. During the same period, MTN lost 473 customers, Airtel lost 950, and Globacom recorded 1,143 outgoing porting.

The new leadership and strategic changes at 9Mobile mark a crucial step in the company’s efforts to stabilise and reclaim its position in Nigeria’s competitive telecommunications market.