Sunday, November 17, 2024
27 C
Lagos

9mobile: Hanging in the Balance!

When the curtain fell on Etisalat Nigeria in the middle of 2017 over a controversial loan of $1.2 billion from 13 banks, a new entity known as 9mobile rose from the ashes of the defunct Etisalat Nigeria. Today, the fate of 9mobile hangs in the balance as it hunts desperately for new investors to keep it afloat in the market.

For the fourth largest network operator in Nigeria, the journey from Etisalat Nigeria to 9mobile is better told in movies than reality.

The decision of the management to expand its network exponentially within a short time-frame led them into a $1.2 billion facility with a consortium of 13 Nigerian banks, leading to the eventual collapse of the Etisalat brand in the country.

9mobile
l-r: Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko; Chief Executive Officer, Boye Olusanya; Chief Financial Officer, Funke Ighodaro and Vice President, Marketing, Adebisi Idowu all of 9mobile at the launch of 9mobile’s new brand identity.

As 9mobile wobbles in the market, putting its corporate future in doubt, the new management team decided to seek new investors who must acquire ‘assets and liabilities’ of the floundering operator. That decision has left the company with a deluge of serious and unserious bidders, just like hungry vultures hovering over a helpless, dying animal.

The Bidders

At the last count and still counting, 17 local and international firms have signified interest in form of Expression of Interest (EoI) to acquire in 9mobile.

These bidders include Dangote Group, Helios Towers, MTN Group, Vodacom, ntel, Airtel, Virgin Mobile, BUA Group, Morning Side Capital Partners, Africell, Obot Etiebet & Co., Tel-ology Holdings Limited, Ericsson, De-elim Services Limited, Veittel, AB-Bro Limited, Hamilton and George International Limited etc.

This long list of potential buyers does not inspire confidence in the future of 9mobile. Rather, it tells the story of a company on the throes of death and decay, with no viable plan of survival in the highly competitive mobile network market in Nigeria.

Industry analysts have worried that even if 9mobile is successfully sold off to any of the buyers angling for it at the moment, the prospect of turning the company around towards the path of survival, stability and growth in the foreseeable future would be a daunting task for the new owners.

Invariably, the future looks horribly bleak for 9mobile!

spot_img
spot_img
spot_img

Hot this week

NLNG Trains 300 Youths on Nigerian Content HCD Program

NLNG, on Tuesday, in Port Harcourt, Rivers State, kicked...

‘Accugas is not Responsible for Power Outage in Akwa Ibom State’

Accugas Limited, a subsidiary of Savannah Energy, wishes to...

NGX Group Chairman, Umaru Kwairanga, Visits Dubai Financial Market for Industry Partnership

Dr. Umaru Kwairanga (2nd Left) with other industry players...

RMB Nigeria Concludes ₦40bn Multi-Instrument Issuance Programme with SEC

RMB Nigeria Issuance SPV Plc, a funding vehicle incorporated...

Topics

Zenith, FCMB, GT Lead Negative Bank PR; Coronation, Leadway in Insurance Sector

Since the beginning of 2022, the Nigerian banking (commercial...

Nigeria Must Rethink Forex Policy to Spur Investment

There is need for Nigeria to seriously rethink her Forex policy to spur investment and quicker economic recovery. At the same time, the country recorded growth of only 3.96% y/y in Q1, 2015, down from 5.9% in Q4-2014, according to Razia Khan, Economist at Standard Chartered Bank, London. She said Nigeria’s oil sector contracted by 8% y/y in Q1, following growth of 1% in the previous quarter. “Decelerating growth was seen across most sectors in Q1, with the exception of crop production. Q2 growth may be slower still, reflecting a slowdown in activity around the elections, and the transition to a new government.”

GIABA DG, Edwin Harris Jr, to Deliver Realnews 11th Anniversary Lecture

  Edwin W. Harris Jr. Director General ECOWAS Inter-Governmental Action Group Against...

European Watchdog Urges Re/Insurers to Suspend Dividend During COVID-19

  The European regulator has urged re/insurers to temporarily suspect...

A.M. Best: European Insurers Continue Emerging Markets’ Growth

In an attempt to deploy excess capital, some major European insurers have developed overseas operations over the past several years but are now taking a more cautious approach, as not all overseas strategies have proven successful, according to a new report published by A.M. Best. Well-capitalised insurers looked to overseas investments in order to improve margins during a time when traditional domestic markets remain mature and saturated, while low interest rates are hitting investment returns, said the report, titled “European Insurers Continue Overseas Expansion Drive but More Focused in Approach.”

5G: Mafab, MTN Emerge Winners in Nigeria’s 3.5GHz Spectrum Auction

(L-R): Dr. Abimbola Alale, Managing Director, Nigerian Communications Satellite;...

9mobile Secures $230m from AFC for Expansion

9mobile Nigeria has secured $230 million from the Africa...

Buhari Vs Twitter: The Inglorious War!

The deletion of a tweet by President Muhammadu Buhari...
spot_img

Related Articles

Popular Categories

spot_imgspot_img