9Mobile Emerging Markets Telecommunication Services Limited has been acquired by LH Telecommunication Limited.

A statement issued on Sunday by the telco revealed that the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC) approved the acquisition of its majority shares as required by law.

The telco has constituted a new board as it prepares for life under its new owner. This is happening after the telco recently appointed Obafemi Banigbe as its Chief Executive Officer. Sources at the time attributed Banigbes rise to an indication of fresh investment into the struggling telco.

The investment was approved by the African Export-Import Bank (AFREXIM), the senior lender to 9Mobile, in May 2023. This has resulted in a change in control of 9Mobile in favour of the new investor by issuing new shares amounting to 95.5 percent of 9Mobile to the new investor in consideration of the injection of fresh capital into the company.

9Mobile has faced tough times since Etisalat Abu Dhabi, United Arab Emirates, exited the Nigerian over a $1.2 billion loan crisis in 2017. The telco has struggled to invest in its network, translating to poor network reception for subscribers. The telcos subscriber base has fallen from 16.96 million in December 2017 to 11.66 million in January 2024.

Since its investors left, talks of an acquisition have trailed it. In 2023, there were reports that MTN was interested in acquiring 9Mobiles operating spectrum. In media reports, MTN Groups spokesperson, Nompilo Morafo, confirmed that its Nigerian arm was exploring national roaming opportunities.

Morafo said, MTN Nigeria is not looking to acquire 9Mobile spectrum. MTN Nigeria has been exploring national roaming opportunities in Nigeria in line with the group strategy of network as a service.

LH Telecommunication LTD, the new owner of 9Mobile, also nominated a new board of directors, intending to inject fresh capital into the telco.

Thomas Etuh is the chairman of the board. Other members include Nahim Abe Ibraheem, Femi Edun, Senator Daisy Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh.

The new board has also ratified the appointment of the new management team led by Obafemi Banigbe as the managing director and Chief Executive Officer of the Company.

9Mobiles re-entry will toughen the telco industry competition, where MTN, Airtel and Glo have been major players, analysts say. (BusinessDay)