When UAE-based Etisalat entered Nigeria’s telecom market in 2008, it faced fierce competition from established players like MTN, Airtel, and Globacom. By identifying unserved young subscribers, Etisalat carved a niche with innovative campaigns like “0809ja for Life” featuring music star Banky W, alongside initiatives like sponsoring Nigerian Idol and launching prizes for innovation and literature. These efforts boosted its subscriber base to 22.5 million by 2016, securing a 14% market share.
However, the story of 9mobile—Etisalat’s rebranded successor—is one of rapid decline driven by financial mismanagement, infrastructure deficits, and leadership instability.
The Collapse of Etisalat Nigeria
Etisalat Nigeria’s fall began with its $1.2 billion loan default in 2016, exacerbated by the devaluation of the naira. Limited spectrum holdings, inadequate fibre infrastructure, and the 2014 sale of its 2,136 base towers to IHS Towers left the company unable to compete effectively.
Unlike MTN, which had 39,972 km of fibre, Etisalat’s modest 4,620 km of fibre and reliance on 48,957 km of microwave links hindered network quality, particularly in urban areas. This technological gap, coupled with mounting debts, led to Etisalat Group exiting the Nigerian market in 2017, abandoning its 85% stake.
Challenges Facing 9mobile
1. Leadership Instability
Since Etisalat’s exit, 9mobile has seen five CEOs between 2017 and 2023, making it the telecom operator with the highest leadership turnover in Nigeria. Boardroom disputes further weakened decision-making, preventing CEOs from executing strategic plans.
2. Infrastructure Deficiencies
9mobile lacks adequate fibre networks to support modern telecom operations. Frequent fibre cuts have worsened service quality in areas like Lagos, where subscribers can only make WhatsApp calls due to network failures.
3. Mounting Debt and Funding Gaps
Efforts to secure funding, including Teleology Holdings’ failed $500 million bailout in 2018, left the company unable to invest in critical infrastructure like base stations or nationwide fibre deployments.
4. Declining Subscriber Base
From 22.5 million subscribers in 2016, 9mobile’s user base dwindled to 2.1% market share by 2024, largely due to poor service quality and stiff competition from MTN and Airtel.
5. Workforce Challenges
After Huawei terminated its managed services agreement in 2021, 9mobile inherited undertrained engineers. Poor employee incentives have led to a brain drain, with engineers leaving for competitors like Airtel.
Opportunities and Steps to Recovery
1. New Ownership and Leadership
In 2023, LightHouse Telecoms acquired 9mobile for $750 million. The new leadership, including CEO Obafemi Banigbe, COO John Vasikaran, and Chief Technical Officer Ayodeji Adedeji, is focusing on stabilising operations.
2. Roaming Partnerships
Discussions with MTN and Airtel for roaming agreements could extend 9mobile’s network reach without immediate infrastructure deployment. This strategy may help regain lost subscribers while cutting costs.
3. Enterprise Focus
9mobile continues to generate revenue from enterprise customers, providing a stable foundation to rebuild other segments.
4. Leveraging Brand Equity
Despite setbacks, the 9mobile brand remains recognised in Nigeria. Strategic marketing campaigns aimed at younger audiences could rekindle its appeal.
The Path Forward
To recover, 9mobile must:
- Invest in Infrastructure: Expand fibre networks and rebuild its physical presence, including dormant experience centres.
- Foster Innovation: Reintroduce creative, youth-focused campaigns reminiscent of the “0809ja for Life” era.
- Stabilise Leadership: Retain skilled executives and engineers to rebuild trust internally and externally.
- Diversify Services: Enhance offerings through partnerships, financial services, and digital platforms.
With new ownership and a fresh management team, 9mobile has the potential to rise again. However, overcoming years of mismanagement and fierce competition will require a bold combination of infrastructure investment, innovative marketing, and strategic partnerships.
As Gbenga Adebayo, President of ALTON, noted: “The company needs to restart to tap its massive potential. It is a known brand; hence restarting will put it on the trajectory for growth.”
9mobile’s success will ultimately hinge on its ability to adapt and remind Nigerians why they once loved to “talk” with 0809ja.