Nine Mobile, the telecom operator burdened with $1.2 billion in debt after Etisalat UAE divested seven years ago, has found a new owner and board, paving the way for a potential turnaround. 9Mobile announced that the Nigerian Communications Commission (NCC) approved its acquisition by LH Telecommunications Limited, a little-known Nigerian company registered in April 2023 and led by Thomas Etuh, founder of the Tak Group of Companies.
Although the NCC has not made a public statement about the acquisition, an official from the commission confirmed they were aware of the deal, which had been progressing since 2023. The acquisition process reportedly took a year due to corporate infighting following LH’s control of 9Mobile in June 2023, according to sources familiar with the talks.
Established in 2009 as a subsidiary of the Emirati-state-owned telecom Etisalat, 9Mobile quickly grew as millions of Nigerians acquired their first mobile phones and SIM cards during the early 2010s. However, Nigeria’s economic downturn over the past decade, marked by accelerating inflation and currency devaluation, significantly impacted 9Mobile due to its substantial dollar debt. Etisalat divested from the business in 2017, leading to a sale in 2018 and the appointment of a new CEO, Adrian Woods.
Despite these changes, 9Mobile continued to struggle. While rival telecom companies gained millions of new subscribers, 9Mobile lost 11.6 million subscribers over the decade. Frequent network outages, even in urban areas, further damaged its reputation among consumers.
The acquisition by LH Telecommunications offers a new lifeline to 9Mobile. The deal gives LH control of Nigeria’s fourth-largest telecom company, though it sparked controversy. Former chairman Nasri Ade Bayero opposed the takeover, claiming the process of appointing the new board breached corporate governance ethics. This infighting led to a funding freeze within the company, affecting subscriber numbers between December 2023 and January 2024.
Thomas Etuh’s ascension as 9Mobile’s new chairman raises questions due to his professional track record and reputation as one of Nigeria’s top debtors. According to the Asset Management Corporation of Nigeria (AMCON), Etuh’s company, Tak Continental Limited, owes ₦11.58 billion. Despite this, Etuh has held significant positions, including chairman of Unity Bank Plc, Veritas Kapital Assurance Plc, Lighthouse Capital Limited, Notore Chemicals Industries Plc, and the Jennifer Etuh Foundation (JEF).
Etuh’s leadership comes at a critical time as 9Mobile seeks to stabilize and grow its business. With a newly assembled board, including influential members of the TY Danjuma family, 9Mobile saw a growth of over 400,000 subscribers between June and November 2023, driven by funding released during that period. The company aims to leverage this momentum to rebuild its market position and enhance service quality.