Unknown purchaser LH Telecoms assumes control of troubled Nigerian mobile network provider, 9mobile.
In a significant move for the Nigerian telecommunications industry, Thomas Etuh, a prominent businessman with a strong background in the private sector, has been appointed as the chairman of 9Mobile. The acquisition of 9Mobile by LH Telecommunications Limited, a company registered in April 2023 and led by Etuh, marks the end of a seven-year debt saga that saw the former subsidiary of Etisalat UAE accumulate a staggering $1.2 billion in debt.
The acquisition process, however, was not without controversy. Former chairman Nasri Ade Bayero opposed the deal, claiming it breached corporate governance ethics. The process took a year due to corporate infighting after LH took control of 9Mobile in June 2023. Despite these challenges, the Nigerian Communications Commission (NCC) approved the acquisition.
Etuh's business career spans across various sectors, including telecommunications and finance. He previously held significant positions in the banking industry, such as the former chairman of Unity Bank Plc. His tenure as chairman was marked by influencing executive transitions within the financial sector.
However, Etuh's name has surfaced in legal cases involving the Nigerian Economic and Financial Crimes Commission (EFCC). He is among the individuals listed in connection with the freezing of assets and funds related to the former managing director of Bank PHB. While there is no direct allegation or conviction against Etuh, the EFCC alleges that he benefited from or was involved in firms used for laundering funds from Bank PHB during the tenure of convicted ex-bank executives.
Despite these legal issues, LH Telecoms has assembled a competent board of executives, including two highly influential TY Danjuma family members. The new ownership has also seen a consistent growth in 9Mobile's subscriber base, with over 400,000 new subscribers added between June and November 2023 due to the funding released during the period.
The early 2010s saw 9Mobile quickly gain new subscribers due to government support for broadband adoption and a booming economy. However, the company has lost 11.6 million subscribers over the decade and is struggling to grow, with a poor reputation for network reliability.
Founded in 2009 as a subsidiary of Emirati-state-owned telecom Etisalat, 9Mobile faced significant challenges when Etisalat divested from the business in 2017. A team from the Central Bank of Nigeria and NCC stepped in to find a new owner, culminating in the recent acquisition by LH Telecommunications Limited.
Under the new leadership, 9Mobile has also faced challenges in other sectors. Notore Chemicals Industries Plc, a company listed on the Nigeria Exchange (NGX) and chaired by Etuh, recorded a 33% revenue loss year-on-year from ₦32.31 billion in 2022 to ₦21.55 billion in 2023. Similarly, Veritas Kapital Assurance, also listed on the NGX, recorded a revenue increase of 41% from ₦5 million in 2022 to ₦7.1 million in 2023.
As Thomas Etuh takes the helm at 9Mobile, he faces a daunting task of revitalising the company and restoring its reputation in the face of economic challenges, legal issues, and a struggling market. The future of 9Mobile under his leadership remains uncertain, but one thing is clear: the company is at a crossroads, and the decisions made in the coming months will shape its future for years to come.
In light of the latest acquisition of 9Mobile by LH Telecommunications Limited, a technology-driven business led by Thomas Etuh, there is an opportunity for significant funding to improve the company's infrastructure and revitalize its reputation in the Nigerian telecommunications industry. Despite past legal issues and controversies surrounding Etuh, the newboard of executives, including influential figures from the TY Danjuma family, is expected to contribute to the company's growth strategies. However, with 9Mobile's past struggles in maintaining network reliability and a shrinking subscriber base, the future success of the company will depend on Thomas Etuh's leadership in finance and business decisions, as well as his ability to address the ongoing economic challenges and market competition.
