Two telecoms operators in Nigeria, MTN Nigeria and Airtel Africa Plc, have attracted a sum of $2billion (approximately N822.66billion) funds into their operations.
This figure is despite a fall in the foreign direct investments (FDIs) into the industry by 78 per cent in the first six months of this year, according to the first quarter (Q1) and Q2 of this year’s Capital Importation data released by the National Bureau of Statistics (NBS).
The data showed that the sector attracted a total of $56.62 million during the period under review, while in the same period of last year, FDI’s in the sector stood at $263.13 million.
MTN Nigeria said it plans to invest N617 billion (approximately $1.5 billion) over the next three years on the expansion of its broadband access across the country.
The Federal Government had launched the National Broadband Plan (NBP) 2020-2025 designed to deliver data download speeds across Nigeria of a minimum 25megabyte per second (Mbps) in urban areas, and 10Mbps in rural areas, with effective coverage available to at least 90 per cent of the population by 2025 at a price not more than N390 per 1GB of data (that is two per cent of median income or one per cent of minimum wage). In order to achieve these ambitious targets, the NBP is focused on recommendations in four critical pillars infrastructure; policy; demand drivers; and funding and incentives.
MTN said the funding is in support of NBP and MTN Group’s strategy known as “Ambition 2025: Leading Digital Solutions for Africa’s Progress”
MTN Group President/Chief Executive Officer Ralph Mupita, who described Nigeria as one of the company’s most important markets also said plan to sell 14 per cent stake to local investors was at an advanced stage.
“Nigeria is one of our most important markets. We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation,” Mupita said after a three-day visit to Abuja and Lagos.
Airtel Africa also secured $200million funding from The Rise Fund, $200million form Qatar Holding LLC, an affiliate of Qatar Investment Authority (QIA) and $100million funding from Mastercard respectively to boost its mobile money operations across its 14 countries of operations.
The Rise Fund will invest $200 million in Airtel Mobile Commerce BV (AMC BV), a wholly owned subsidiary of Airtel Africa Plc.
Airtel Africa Plc is listed on the NSE and Nigeria is the major market for the leading provider of telecoms and mobile money services.
