To expedite its network development initiative, MTN Nigeria Communications will acquire a €100 million loan line from the European Investment Bank (EIB).
The investment will help speed up 4G coverage in Nigeria and increase broadband access, which is in accordance with MTN’s ambitious 2025 plan, the company claims in a corporate filing.
The transaction is the largest funding provided by the EIB for the growth of mobile telecom networks in Africa, the statement continued. It would increase coverage in Lagos and Ogun States and assist in increasing network capacity across the nation to handle increasing data traffic.
MTN Nigeria’s Chief Executive Officer, Karl Toriola said the telecom operator is committed to leading digital solutions for Nigeria’s progress, which requires continuous upgrades and expansions of infrastructure to deliver superior service.
According to him, the EUR 100 million in financing agreed with the EIB will accelerate 4G coverage, enhance network capacity, and drive innovation that will benefit MTN customers.
TechEconomy understands that MTN had in September announced plans to issue up to N100 billion Series 1 bonds under its new bond issuance program.
In 2021, the company raised a N200 billion fixed-rate bond for network expansion and infrastructural upgrade — the first telecommunications company bond issued in Nigeria.
In July, the telecoms firm raised another N200 billion bond to expand network coverage.
“Accelerating large-scale investment in the telecom network is essential to ensuring reliable access and enabling daily living and economic activity,” Vice President of EIB, Ambroise Fayolle, said.
The EIB is committed to unlocking transformational digital investment across Africa and is pleased to provide EUR 100 million backing for MTN Nigeria’s ambitious network expansion program.”
H.E. Samuela Isopi, the Ambassador of the European Union to Nigeria and ECOWAS, said: “Digital transformation offers Africa tremendous opportunities, and digitalization is one of the priorities of the European Union partnership with Africa.
“This record of support for investment in MTN Nigeria by the EIB, the EU bank, will deliver better services, unlock economic opportunities, and improve lives across Nigeria.”
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