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.
As the revolutionary Airtel Spam AI Alert Service rolls out across Airtel Africa’s 14 operating countries, Airtel Nigeria CEO, Dinesh Balsingh, has elaborated on the unprecedented benefits and operating principles guiding the Spam Alert Service.
Designed to enhance user safety, this pioneering AI-driven product provides real-time defense against spam and fraudulent SMS messages, making it a gamechanger for mobile security across the continent.
The Airtel AI Spam Alert Service, which is engineered to automatically detect and label suspicious SMS messages as “Suspected SPAM” without requiring any user action or additional apps, leverages a robust AI algorithm that analyzes over 250 parameters.
These parameters includee sender behavior, message frequency, message geographical distribution, and unusual activity patterns. Impressively, the service completes this process under just two milliseconds, offering near-instantaneous alerts while maintaining the privacy of user data by not reading message content.
Commenting on the breakthrough service, Dinesh Balsingh, CEO of Airtel Nigeria, stated: “Nigeria is not just a critical market for us—it’s a leader in digital adoption within the continent. Our AI Spam Alert Service reflects our dedication to safeguarding our customers from the growing threat of SMS fraud.
“As the first of its kind in Africa, it addresses a fundamental issue of trust and security, which is paramount to our digital ecosystem. We’re proud to offer this service to Nigerians and extend it across our African footprint.”
Following its successful deployment in Nigeria, the Spam Alert Service has now launched in Tanzania and Kenya and is set to cover Airtel’s entire African operations. The service’s automatic activation for all Airtel customers, across both smartphones and feature phones, ensures maximum reach and accessibility.
Early feedback from subscribers has been overwhelmingly positive, with users praising the AI’s efficiency in flagging potentially harmful messages without interfering with their everyday communication.
By pioneering this AI-based spam detection technology, Airtel Africa demonstrates its commitment to leveraging cutting-edge innovation to resolve critical issues facing its subscribers. The AI Spam Alert Service not only protects users but also sets a new benchmark for mobile security standards in the region.
“Our goal is to build a safer digital environment for our users,” added Balsingh. “This innovation is part of our broader strategy to incorporate advanced technologies that address real challenges while enhancing the overall customer experience.”
As Africa stands at the point of a profound transformation, the imperative for greater intra-continental cooperation has never been clearer. The path to shared prosperity depends not on the progress of individual nations but on the collective strength of our commitments.
Central to this vision is the relationship between South Africa and Nigeria, two of the continent’s largest economies, and the institutions that serve as bridges between them.
It was an honour for MTN Group to host Minister Parks Tau (SA Minister of Trade Industry and Competition) and his delegation at our Headquarters in Johannesburg. At a time when global uncertainties are reshaping trade and technology, Africa must respond not in isolation, but in solidarity.
As MTN, we see it as our duty to serve as an economic diplomatic bridge between Nigeria and South Africa — driving growth, fostering inclusion, and unlocking opportunity for the Africa’s shared prosperity.
MTN’s journey exemplifies what is possible when two great nations collaborate. As Nigeria’s largest South African investor, MTN has long viewed its presence not simply as a commercial venture but as a platform for inclusive development.
Since commencing operations in Nigeria in 2001, we have invested more than US$10 billion in the country’s digital infrastructure.
Today, MTN Nigeria serves over 80 million subscribers, employs thousands directly, and supports hundreds of thousands of livelihoods across its extended value chain.
Yet, while the economic footprint is significant, our greatest source of pride lies in the social and developmental outcomes accompanying this investment, expanded access to connectivity, enhanced financial inclusion, and the empowerment of individuals and enterprises through digital technologies.
Still, the operating environment remains complex. Macroeconomic challenges in Nigeria, including currency depreciation, inflation, and constraints in accessing foreign exchange, have placed pressure on business continuity and investor confidence.
Despite these difficulties, MTN remains firmly committed to its business case and its long-term presence in Nigeria, underpinned by a belief in the country’s enduring potential and strategic importance to the continent.
However, for South Africa and Nigeria to truly unlock their bilateral potential, a number of long-standing issues require resolution. The upcoming South Africa–Nigeria Trade and Investment Summit, to be held in Abuja later this year, presents a unique opportunity to address these concerns.
The Summit serves not merely as a diplomatic engagement, but as a catalyst for policy reform, reciprocal market access, and institutional dialogue. Importantly, it should reinforce the private sector’s role in shaping practical, actionable solutions that support cross-border trade and investment.
The African Continental Free Trade Area (AfCFTA) offers a historic platform to actualise these ambitions. Yet its success will depend as much on infrastructure and digital connectivity as it will on tariff liberalisation or regulatory harmonisation.
As a pan-African operator, MTN is investing heavily in the digital foundations of AfCFTA, facilitating seamless mobile communication, enabling digital payments, and building platforms for cross-border entrepreneurship.
We also believe that integration must extend beyond economic frameworks to include cultural exchange and people-to-people engagement. One such initiative is our MTN Media Innovation Programme, which brings emerging Nigerian media professionals to South Africa for immersive learning.
Through programmes like these, we aim to cultivate not only knowledge and skills, but also enduring bonds between our nations’ future leaders.
Nigeria’s telecommunications sector witnessed a notable decline in internet users following a 50 per cent tariff hike on voice, data, and SMS services implemented in January 2025.
The Nigerian Communications Commission (NCC) made this known in industry statistics on its website.
According to the report, the industry lost approximately one million internet users in February, with the user base shrinking from 142.16 million to 141.25 million.
It said although a slight recovery was observed in March, with the figure rising to 142.05 million, the sector’s data consumption patterns were significantly impacted.
The NCC data showed a 12 per cent decline in monthly data consumption in February, dropping to 893.06 petabytes from January’s record high of one exabyte.
It, however, said a marginal rebound was recorded in March, with data usage increasing by 11.5 per cent to 995.88 petabytes.
Despite this modest recovery, the report said consumption levels remained slightly below the January peak, suggesting that subscribers continued to exhibit caution in their usage habits due to the increased tariffs.
Meanwhile, the telecom industry demonstrated resilience in other areas, with operators adding 3.39 million new telephone users between January and March.
This growth propelled the total active lines from 169.32 million to 172.71 million, subsequently boosting Nigeria’s teledensity from 78.10 per cent to 79.67 per cent during the same period.
In terms of market dynamics, Mobile Network Operators (MNOs) maintained their dominance in the internet market.
MTN Nigeria led with 75.62 million users, followed by Airtel Nigeria with 48.8 million, Globacom with 15.37 million, and 9mobile with 1.75 million.
MTN also retained its market lead in active telephone lines with 90.5 million subscribers, representing a 52.48 per cent market share, while Airtel followed with 58.3 million users (33.78 per cent), Globacom with 20.7 million (12 per cent), and 9mobile with 2.9 million (1.72 per cent).
The latest industry figures underscore the complexities facing Nigeria’s telecom sector as operators navigate economic pressures and evolving consumer behaviours.
On porting activities, the NCC report noted that Nigeria’s fourth mobile network operator, 9mobile, had continued to experience a decline in its subscriber base, with a total of 5809 customers porting out of its network both in February and March.
The report showed that other operators recorded insignificant outgoing porting numbers compared to 9mobile.
It showed that MTN lost 647 customers, Airtel recorded 695 outgoing portings, Globacom recorded 771, while 9mobile lost 5808 in both February and March.
In terms of incoming porting, MTN gained the most customers from other operators, with 4855 subscribers joining its network in February and March, the report revealed.
It stated that Airtel recorded 2084 incoming porting, while Globacom gained 1007 customers in both months.
The NCC added that, meanwhile, 9mobile recorded only three incoming porting for both months.
According to the NCC report on incoming and outgoing porting activities of mobile network operators, a total of 7922 subscribers moved from one network to another in February and March.
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