The African Finance Corporation (AFC), a multinational financial development institution, approved a $230 million loan for Nigeria based telecom company 9mobile.

The loan is sanctioned to aid in the growth and profitability of the telecom firm.

Abdulrahman Ado, the Executive Director, Regulatory and Corporate Affairs, 9 mobile stated that the loan was sanctioned by the African Finance Corporation on August 23, Friday.

Alhaji Nasiru Bayero, the Chairman of the Board of Directors at 9mobile, expressed his happiness at the African Finance Corporation’s willingness to sanction loan for the EMTS’ innovative growth plan.

The loan would be used to repay debts, finance costs, invest in growth, and payments towards quick win capex initiatives.  The company announced that it would continue enhancing its network capacity and introduction of innovative features thereby ensuring optimum value to its customers.

Phillips Oki, the Chief Financial Officer of 9mobile stated that the approval of loan by African Finance Corporation affirms that the fundamentals of 9mobile business are indeed strong. The sanction of loan further proves that the restructuring activities undertaken after the change of ownership have put 9mobile on the path of growth and profitability. He added that the loan will help 9mobile to reclaim what it has lost.

The new board of directors led by Bayero took over the telecom company in November 2018.

9mobile, the fourth biggest telecom operator was formerly operated by Abu Dhabi based telecoms firm Etisalat and was called Etisalat Nigeria.

There is intense competition in Nigeria’s telecom sector. Africa’s largest telecom operator MTN recently made partnership with banks to increase its network coverage.