MTN Nigeria is partnering with 12 banks to improve its data network with a N200 billion loan

On Wednesday, August 15, 2018, MTN Nigeria signed a seven-year N200 billion loan facilitated by 12 Nigerian banks. This loan will be

The investment indicates a gradual shift in focus from voice services to data services, something more indicative of where the telecommunications market is headed. This was echoed by the company’s Chief Financial Officer, Adekunle Awobodu, during a private press briefing after the loan signing ceremony.

Awobodu said that despite much of the world having already moved to more data-focused telecommunications services, Nigeria is still in the nascent stages of the journey. The trend is clear, however. Fewer people now make voice calls and are more focused on data applications such as social networking and Internet-based mobile services. For the country to fully move into this era, massive capital investment is required. This is the logic behind MTN Nigeria’s move.

The N200 billion fund will be poured into expanding MTN’s data network and improving its fibre infrastructure. The N200 billion is provided in Naira by the following banks:

The loan is structured with a two-year moratorium and a repayment plan of five years.

The loan, Ferdi Moolman, CEO, MTN Nigeria says, will make “it possible for people to connect to each other and the world, find and share information and ideas, create and access new digital services and reimagine old services. This partnership puts in place infrastructure that empowers commerce, industry and the provision of public services.”

In May 2018, Ralph Mupita, MTN Chief Financial Officer, said the debt will help the tech giant to fund local investment and replace existing debt in Nigeria shifting its focus from dollar-denominated debt to debt in local currencies.

The Johannesburg-based company posted an increase in its subscriber base in Nigeria by 5.6% to hit 55.2 million, the highest in Africa.

The group's financial report also indicated that its Nigerian subsidiary performed ahead other markets and above expectations with double-digit growth.

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