When Etisalat, now known as 9mobile, entered Nigeria’s telecom sector in 2008, it faced stiff competition from industry giants MTN Nigeria, Zain Nigeria (now Airtel), and Globacom. Despite this, the UAE-based company identified a significant opportunity in the underrepresented youth market.
By collaborating with Banky W, a rising Nigerian music star, Etisalat launched the memorable “0809ja for Life” campaign. This youth-centric strategy resonated strongly with the target demographic, establishing the company as a formidable player in Nigeria’s telecom space. During its peak, Etisalat became the fourth-largest operator, backed by savvy marketing strategies like its sponsorship of Nigerian Idol and the launch of the “Etisalat Prize for Innovation and Literature.” By mid-2016, the company had amassed 22.5 million subscribers, capturing 14% of the market.
Challenges and Decline
Despite its early success, Etisalat’s ambitious plans unraveled in 2016 after defaulting on a $1.2 billion loan intended to refinance its operations and modernize its network. The naira’s devaluation significantly increased the cost of servicing foreign loans, exacerbating the company’s financial woes.
Etisalat’s limited spectrum holdings and inadequate fiber infrastructure—4,620 kilometers compared to MTN’s 39,972 kilometers—left it unable to compete effectively. Its 2014 sale of 2,136 base towers to IHS Towers further constrained revenue opportunities.
The Transition to 9mobile
In 2017, Etisalat’s parent company exited Nigeria, citing financial and regulatory challenges. The company rebranded as 9mobile, aiming for a fresh start under Emerging Markets Telecommunications Services (EMTS). However, the new entity inherited significant debts, operational inefficiencies, and an unstable corporate structure.
The loss of a critical partnership with Huawei compounded the challenges. Huawei had provided managed services for Etisalat but ended the agreement in 2021 due to mounting debt. Meanwhile, internal management crises and frequent boardroom disputes hindered progress, making it difficult for successive CEOs to implement impactful changes.
Attempts at Recovery
To stabilize the company, the Nigerian Communications Commission (NCC) facilitated its acquisition. Teleology Holdings won the bid in 2018 but struggled to secure the $500 million needed for a turnaround. The telco’s inability to invest in critical infrastructure such as fiber optic cables and base stations further eroded its competitive edge.
Subscriber numbers declined drastically, falling by 8.6 million between 2016 and 2023. The industry-wide cleanup of unregistered SIM cards in 2024 led to an additional loss of 10.4 million subscribers, leaving 9mobile with a mere 2.1% market share.
Leadership Challenges
9mobile has seen five CEOs between 2017 and 2023, more than any other major Nigerian telecom operator. Despite leadership changes, limited resources and ongoing boardroom conflicts hindered progress. Employee morale also suffered due to inadequate incentives, with many leaving for competitors like Airtel.
New Ownership, Persistent Hurdles
In mid-2023, LightHouse Telecoms finalized its $750 million acquisition of 9mobile, marking a new chapter for the embattled telco. However, infrastructure deficits remain a significant barrier. With only 4,620 kilometers of fiber, 9mobile continues to rely heavily on less efficient microwave links. The company’s subscriber revenue—averaging ₦1,616 annually per user—is insufficient to offset its operational costs or recover the acquisition investment.
9mobile’s physical presence has also diminished, with many experience centers offering limited services or shutting down entirely. Rising infrastructure costs, frequent fiber cuts, and a lack of funding exacerbate these challenges.
Hope for the Future
Under new leadership, including CEO Obafemi Banigbe and COO John Vasikaran, 9mobile aims to stabilize operations and explore new opportunities, such as roaming agreements with competitors like MTN and Airtel. These partnerships could help extend network coverage without requiring massive infrastructure investments.
Despite its struggles, 9mobile retains potential. Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), highlighted the brand’s existing assets, suggesting a renewed focus could revitalize the company.
With a new board of directors and backing from the TY Danjuma Group, 9mobile has an opportunity to rebuild. However, success will require not just financial investment but also a return to the innovative marketing strategies that once set the brand apart. Reconnecting with Nigeria’s youth and reigniting the creative spark of its early days could be key to reclaiming its relevance in the competitive telecom landscape.
