By NIyi JACOBS
9mobile Nigeria, once a vibrant telecommunications brand commanding a 14% market share with over 22.5 million subscribers, is now grappling with survival. The company, which emerged as a serious competitor in Nigeria’s telecom sector in 2008 under the name Etisalat, is losing ground rapidly. From its celebrated launch with the catchy “0809ja for Life” campaign, 9mobile has now seen its market share plummet to a mere 2%, with just 3.4 million active subscribers as of October 2024.
While rivals MTN, Airtel, and Globacom have thrived, gaining millions of new subscribers, 9mobile has been plagued by operational inefficiencies, financial woes, and a series of unfortunate events that have made it the industry’s weakest link.
Decline by the Numbers
According to the Nigerian Communications Commission (NCC), MTN currently dominates the market with 80.3 million subscribers (51.09%), followed by Airtel with 54.4 million (34.61%), and Globacom with 19.1 million (12.15%). Meanwhile, 9mobile has struggled to retain its dwindling base. In September 2024 alone, it lost over 7,000 subscribers due to porting — a staggering 90% of the total number of customers who switched networks that month.
Despite these losses, attempts by customers to leave the network were hampered by a prolonged service outage, which began on December 14, 2024, leaving millions unable to make calls, send messages, or conduct financial transactions.
A Network in Crisis
9mobile attributed the outage to a fire outbreak and multiple incidents of fiber vandalism that affected its main data center in Lagos and other infrastructure. “We sincerely apologize for the recent service outages… We are working diligently to restore services in the remaining areas as soon as possible,” the management stated.
Yet, the assurances have done little to calm frustrations. Many subscribers remain without service, and some, like this writer, have had to abandon 9mobile lines altogether. The damage to the brand’s reputation has been severe, with customers increasingly skeptical of the network’s ability to recover.
The Debt Trap
The roots of 9mobile’s troubles date back to 2016, when it defaulted on a $1.2 billion loan from a consortium of Nigerian banks. This debt was initially meant to modernize its network and refinance a $650 million facility. However, the sharp devaluation of the naira, rising operational costs, and insufficient infrastructure investments created a financial strain from which the company has yet to recover.
The situation led to the exit of its original owners, UAE-based Mubadala, in 2017. Emerging Markets Telecommunication Services (EMTS) took over and rebranded the company as 9mobile, but the change in ownership failed to halt the decline. In July 2024, LH Telecommunications Limited acquired the struggling firm for $750 million, raising hopes of a turnaround.
Unrealized Promises
Six months after the acquisition, 9mobile’s fortunes remain grim. BH investigations reveal that as of January 2025, the new management has yet to announce a clear capital investment plan to overhaul its infrastructure. Analysts estimate that the company would need over 200 years to recoup the $750 million purchase cost at its current annual revenue of $3.5 million.
To address these challenges, 9mobile’s CEO, Obafemi Banigbe, announced an ambitious $3 billion investment plan to modernize and expand the network’s infrastructure. Speaking via Zoom, Banigbe outlined a four-phase recovery strategy: stabilization, modernization, transformation, and growth.
“The company has suffered from a lack of investment over the last 10 years, leading to service degradation and subscriber loss. But we are committed to reversing this trend and redefining our customers’ experience,” Banigbe said.
Can $3 Billion Save 9mobile?
While the proposed $3 billion investment sounds promising, industry experts remain skeptical about its feasibility and impact. The telecom industry is capital-intensive, and 9mobile’s infrastructure is decades behind its competitors. For example, MTN boasts 39,972 kilometers of fiber infrastructure, compared to 9mobile’s 4,620 kilometers.
Additionally, 9mobile’s limited spectrum holdings further restrict its ability to compete effectively. With spectrum licenses for 2G and 4G LTE services on the 1800 MHz and 900 MHz bands, and 3G services on the 2100 MHz band, its network capacity pales in comparison to its rivals.
To regain its footing, the company must not only modernize its infrastructure but also win back customer trust. This will require significant improvements in service quality, aggressive marketing campaigns, and competitive pricing strategies to lure back lost subscribers.
The Competition Advantage
While 9mobile has been floundering, competitors like MTN and Airtel have consistently outperformed. MTN has invested heavily in its network, expanding its coverage and introducing innovative services to retain its dominant position. Airtel, meanwhile, has focused on improving data services and targeting underserved rural markets. Globacom, though smaller, has maintained a steady subscriber base with attractive data packages and competitive call tariffs.
In contrast, 9mobile has struggled to differentiate itself. Its once-loyal customer base, drawn in by the youthful “0809ja for Life” campaign, has largely migrated to more reliable networks.
A Glimmer of Hope
Despite the challenges, 9mobile has some potential strengths. Its brand still resonates with many Nigerians, particularly SMEs and the youth demographic. If the $3 billion investment materializes, it could help the company revamp its infrastructure and recapture its niche market.
Moreover, 9mobile’s new management appears determined to make a difference. The phased recovery plan, if executed effectively, could stabilize the network and position it for future growth. However, time is not on its side. With customers leaving in droves and competitors solidifying their positions, 9mobile must act swiftly to stem the tide.
The Road Ahead
The telecoms sector in Nigeria remains one of the most competitive and profitable industries, with over 150 million active lines and growing demand for data services. For 9mobile to reclaim its place in this dynamic market, it will need to overcome significant financial, operational, and reputational hurdles.
The company’s journey will undoubtedly be challenging, but with the right strategies, strong leadership, and sustained investment, it may yet have a chance to rise from the ashes. The $3 billion question remains: can 9mobile deliver on its promise to transform and reclaim its lost glory? Only time will tell.
