MTN Nigeria has raised 125 billion naira through the issuance of its cash certificates and intends to use this money for its short-term working capital and financing needs.
The company said that the move is part of its strategy to diversify its financing options. In October 2022, it had already contracted a loan of 100 million euros from the European Investment Bank (EIB) to extend its broadband network.
In its 2022 annual report, MTN Nigeria announced plans to accelerate its 4G and 5G coverage to meet data demand. It plans to achieve 83% population 4G coverage in fiscal 2023, while continuing to roll out additional 5G sites. The proceeds from the issue of its cash certificates could be used to finance these investments.
These various investments should enable MTN Nigeria to strengthen its leadership position in the highly competitive Nigerian mobile telephony market, which continues to expand at pace.
According to the latest statistics from the Nigerian Communications Commission (NCC), the company controls 40.71% market share against 26.81% for Airtel Nigeria, 26.71% for Globacom and 5.77% for 9mobile.