9mobile Denies Claim That French Telco, Orange, Bought Shares In Etisalat

9mobile has denied reports that the French telecommunication company, Orange, bought and owns a stake in Etisalat Nigeria and invested in 9mobile. The denial from 9mobile - previously known as Etisalat - follows a report that Orange is planning to expand its telecommunication services into Nigeria, which is the largest telecoms market in Africa.

9mobile, which is operated by Management of Emerging Markets Telecommunications Services (EMTS) Limited, said Orange isn't part of the company's investors, refuting claims that Orange purchased a 65% stake in Etisalat Nigeria when it had a financial crisis before the Abu Dhabi company exited Nigerian market and EMTS took over and rename the brand to 9mobile.

“We emphatically state that Orange did not purchase any stake in Etisalat Nigeria (now 9mobile) and does not have any investment in the 9mobile’s business,” 9mobile said in a Nairametrics report. AllNews recalls that on June 20, 2017, Etisalat UAE disclosed that it will divest from the Nigerian market after a faceoff with some Nigerian banks over debts.

However, despite EMTS taking over and rebranding Etisalat into 9mobile, the network provider has continued to struggle with its rivals MTN, Glo and Airtel already having a foothold in the market. While the rivals' internet subscribers grow, 9mobile's subscribers have continued to drop drastically.

Orange Is Coming To Nigeria To Rival MTN, Glo, Others

AllNews had reported a week ago that Orange is planning to establish a subsidiary in Nigeria to compete with MTN, Globacom, Airtel, and 9mobile. The intention of Orange was made known by the Chief Executive Officer of Orange, Stephane Richard, who said it only makes sense to be operating in Africa's largest economy.

Orange had been operating in the Middle East and some part of Africa but has stayed away from Nigeria, where MTN leads the market. But Orange has now sighted Nigeria has a profitable market to expand into. The move is expected to expand the company's revenue markets in Africa.

Why Is Orange Expanding Into Nigeria?

The telecoms market in Nigeria is the largest telecom market in Africa. Although, despite the other telcos finding a foothold, 9mobile has been struggling. So the telecom market in Nigeria isn't all that rosy, but smartphone user growth in the country which is roughly between 25 and 40 million according to Statista, and Nigeria's population of over 190 million, have been a selling point for the country to lure in telecoms providers.

The growth of the industry has seen telecoms account for 10.88% in the Gross Domestic Product (GDP) of Nigeria in Q1 2020. The highest it had contributed had been 11.39% in Q2 2019, Nigerian Communications Commission (NCC) data showed. These are enough reasons for Orange to have a change of mind to taste the waters in Nigeria.