Telecom
Banks Remove $1.2Bn 9Mobile Debt from Books
The 12 banks involved in the $1.2 billion 9Mobile loan are setting aside a large part of the debt from their books ahead of the December 31 end-date for the fiscal year, according to the Nation.
The mobile company took the loan four years ago from a consortium of banks. It failed to repay the loan due to a currency crisis and the economic recession.
In the deal are: Zenith Bank, GTBank, First Bank, United Bank for Africa, Fidelity Bank, Access Bank, Ecobank, First City Monument Bank, Stanbic IBTC and Union Bank.
Zenith Bank yesterday announced that it had made a provision on 30 per cent of its loan to 9Mobile, the country’s fourth largest telecoms group formerly known as Etisalat Nigeria.
Peter Amangbo, bank’s Chief Executive Officer said: “We have taken about 30 per cent … as a provision, which we believe is very prudent as the company is undergoing restructuring … to prepare for a new investor.”
Zenith Bank is the largest lender to 9Mobile, one source familiar with the matter disclosed. The bank has declined to disclose its exposure to the telecoms group. The Tier-1 lender had last week reported a pre-tax profit of N92.18 billion for its half year against N53.91 billion a year ago.
The Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC) in July saved Etisalat Nigeria from collapse, stopping the company from going into receivership. But the telecom giant witnessed a board, management and name change.
Richard Obire, Former Keystone Bank Executive Director said many other banks were likely to provide for certain percentage of the loans, depending on their profitability positions.
He said Zenith Bank, being a highly profitable bank, was thinking that it might not be able to recover the full money. “Zenith may be considering that when it gets down to negotiation with 9Mobile, it may end up giving about 30 per cent of the debt. The debtor may ask for more restructuring and loan forgiveness,” Obire said.
According to him, some banks are conservative and may want to stay within the five per cent regulatory non-performing loan threshold while some may want to exceed the limit. “Banks that are making more money are more likely to provide for their loans than those with less profitability,” he said.
Obire said by exceeding the 10 per cent peg for sub-standard loans to go for 30 per cent provision, Zenith Bank was indirectly saying that although the loan was not doubtful, but it was more than sub-standard. “If the bank does 30 per cent provision on the loan in 2017, it may do 50 per cent in 2018 while considering the variables surrounding the loans,” he said.
Olakunle Ezun, Head Treasuries at Ecobank Nigeria, said it is expected that the banks will provide for the loan, which he described as a bad debt. “For now, 9Mobile loan is like a non-performing loan for the banks. I understand that the banks are trying to restructure the loan. If they succeed, it will become a performing loan; otherwise it will have to be provided for in their books,” he said.
He said more banks may provide for the loan by year-end, but such a decision will be determined by the boards and their interpretation of the future of 9Mobile.
According to CBN Prudential Guidelines, banks are expected to review their credit portfolio continuously (at least once in a quarter) with a view to recognising any deterioration in credit quality. Such reviews should systematically and realistically classify banks’ credit exposures based on the perceived risks of default.
To facilitate comparability of banks’ classification of their credit portfolios, the guidelines said assessment of risk of default should be based on criteria, which should include, but are not limited to, repayment performance, borrower’s repayment capacity on the basis of current financial condition and net realisable value of collateral.
The CBN prudential guidelines stipulate that a credit facility should be deemed as non-performing when interest or principal is due and unpaid for 90 days or more; interest payments equal to 90 days interest or more have been capitalized, rescheduled or rolled over into a new loan.
The guideline said a loan can be substandard, doubtful or lost. A loan is subs-standard when unpaid principal and/or interest remain outstanding for more than 90 days but less than 180 days. Credit facilities which display well defined weaknesses which could affect the ability of borrowers to repay, such as inadequate cash flow to service debt, undercapitalisation or insufficient working capital, absence of adequate financial information or collateral documentation, among others, are said to be sub-standard.
According to the CBN guidelines, a loan is classified as doubtful when unpaid principal and/or interest remain outstanding for at least 180 days but less than 360 days and in addition to the weaknesses associated with sub-standard credit facilities reflect that full repayment of the debt is not certain or that realisable collateral values will be insufficient to cover bank’s exposure.
A loan is classified as lost when unpaid principal and/or interest remain outstanding for 360 days or more and in addition to the weaknesses associated with doubtful credit facilities, are considered uncollectible and are of such little value that continuation as a bankable asset is unrealistic.
MTN Nigeria’s commitment to digital innovation took center stage at MarkHack 4.0, the annual marketing and technology conference held at Landmark Event Centre, Victoria Island, Lagos, on Friday, May 23, 2025, with the theme ‘Experience Ignited: Fueling the Customer’s Journey’.
L-R: Akinbulejo Onabolu, Head, Enterprise Segment, MTN Nigeria; Eneyi Obi, Global Chief Marketing Officer, Rise; Tobi Olanisimi, Marketing Manager, AB InBev; Martha Kayode, Marketing Head, PZ Cussonz; Sulaiman Shaibu, CEO, BFT Consulting Service and Daniel Adeyemi, Managing Editor, Condia Business at the MarkHack 4.0 Conference held at the Landmark Event Centre, Victoria Island, Lagos on Friday, May 23, 2025.
In a celebration of innovation, technology, and storytelling, the company also took home the award for Best Use of Data in a Marketing Campaign at the Nigeria MarTech (MarkHack 4.0) Awards Night. This award recognizes brands that have successfully transformed data into compelling narratives and actionable insights to meaningfully engage their audiences.
Akinbulejo Onabolu, Senior Manager, Segment Management, Enterprise Business at MTN, joined a panel to discuss the power of immersive technologies on consumer behaviour. Drawing from MTN’s launch of its 5G Digital Experience Centre in Abuja last year, Onabolu highlighted the rapid evolution of immersive technologies such as Virtual Reality (VR) and Augmented Reality (AR) stating “Our 5G centre is a sandbox for our customers to come and see how technology can shape things. At the launch event, we unveiled a smart city to customers, clients and dignitaries in attendance, with gaming and other tech experiences.”
On the intersection of data, AR and VR, he added: “Co-creating with MTN takes our minds to a platform where different partners, companies and creators can bring their buildings, products and businesses for people to see via augmented reality and connectivity, just swiping through and following through that journey.
“As a part of impacting our customer’s lives, a few years ago, we also played around with the Metaverse and we ended up creating some of our back-office processes with some of our customer journeys on augmented reality and virtual reality such that a customer somewhere can engage with a virtual agent to solve real life problems and integrating that back into our operating systems. As an organization, at a lot of our events, you will find a lot of AR and VR experiences.”
Speaking on how MTN is embedding immersive technology into its day-to-day operations, he explained that the company is prioritizing both internal capability development and external engagement. “85% of our organization has undergone extensive training on AI and that already is a great addition to our daily lives. We’re using it to do things differently, developing user journeys and brainstorming different things. In terms of Augmented Reality and Virtual Reality, we are working with organizations to develop training programs which we use internally.”
He described the bases for this tech as stable connectivity, high bandwidth, high speed and low latency. “Over the past year, we’ve doubled our 5G capacity across the entire country. Wherever you are, you’ll probably start to pick up 5G. With our FibreX service, we’re going way beyond connectivity to create the systems and platforms to support the ecosystem, AR and VR. In addition to this, we’re also engaging regulatory systems to start to tease this out and build the proper governance.”
The session, moderated by Daniel Adeyemi, Managing Editor at Condia Business, also featured insights from leaders in FMCG, consulting, and global marketing, all underscoring the transformative potential of immersive technologies for Africa’s future.
MTN Nigeria has announced a massive capital expenditure (CAPEX) drive for 2025, nearly doubling its investment to almost 900 billion Naira, as it seeks to significantly enhance network service quality in major cities like Lagos and Abuja and extend improvements to other areas.
Karl Toriola
This financial commitment, up from a combined total of approximately 440 billion Naira spent in 2023 and 2024, was detailed by MTN Nigeria CEO, Dr. Karl Toriola, during a recent interview on Arise TV.
Toriola highlighted that a key focus of the increased CAPEX will be on “putting additional capacity in a city like Lagos, particularly in Abuja, where you have a lot of buildings coming up, you need additional sites because there are coverage issues.”
Beyond these critical urban centres, the investment aims to bolster network resilience and ensure power stability for its infrastructure nationwide. This includes proactively addressing site outages by ensuring timely payment for operational necessities such as diesel for generators, a persistent challenge in the Nigerian operating environment
The CEO outlined the comprehensive nature of the upgrade process, which involves “placing orders formally, opening letters of credit, and then the equipment gets shipped in and installed.” He added that where necessary, MTN will be “acquiring new sites” and “laying fiber to the base station to create better stability.”
While the immediate CAPEX is geared towards improving existing service quality and capacity, this investment aligns with MTN’s broader goals, which include enhancing financial inclusion in underserved rural areas, suggesting a long-term vision for network expansion and service improvement that extends beyond metropolitan areas.
Customers are expected to begin experiencing the positive impact of these investments with a “significant improvement in quality of service” anticipated by the end of the second quarter or early in the third quarter of 2025, according to Toriola.
Airtel Nigeria, telecom service provider, has announced that its AI-powered Spam Alert Service issued over 9.6 million spam alerts between March 13 and May 20, 2025.
As part of its ongoing commitment to protecting customers from unwanted and potentially fraudulent communications, Airtel designed the AI Spam Alert service to analyze traffic patterns and detect anomalies.
In the period since launch the AI pinpointed a total of 9,667,008 SMS as potential spam messages in the two months after its launch.
Of these, the system identified 528,080 on-net (Airtel-to-Airtel) and 9,138,928 off-net (from other networks) numbers as suspected spam messages, demonstrating the scale of the threat and Airtel’s advanced processing capability.
Airtel Nigeria is a subsidiary of Airtel Africa.
Commenting on this development, Dinesh Balsingh, CEO, Airtel Nigeria, restated Airtel`s commitment to protecting its customers.
“This milestone demonstrates the strength of our AI-driven infrastructure in combating the growing menace of spam and scam calls. At Airtel Nigeria, we are focused on connecting Nigerians and ensuring their safety and confidence while using our network.
“We understand that trust is the cornerstone of digital communication. That’s why we’ve invested heavily in intelligent systems that not only detect potential threats but also learn and evolve with data. As threats become more sophisticated, so will our solutions. As a company, we remain focused on leading the industry in innovation and customer satisfaction, ensuring that every Nigerian can enjoy a safer and smarter digital experience,” Mr. Balsingh said.
The Spam Alert Service is part of Airtel Nigeria’s broader strategy to integrate artificial intelligence into its core offerings to deliver smarter and safer experiences for its customers across the country.
Recall that the Spam Alert Service was launched on March 13, 2025. A groundbreaking and free solution from Airtel, it notifies users in real-time of suspected spam SMS messages by analyzing over 250 parameters.
The Airtel AI Spam Alert Service is available to all Airtel subscribers on smartphones and feature phones.
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