Largest ever EIB financing for high-speed telecom in Africa
Over 74 million customers to benefit from transformed digital communications
Investment to enhance capacity and expand coverage of the 4G network in Lagos and Ogun States
The European Investment Bank (EIB) has agreed to EUR100 million financing with MTN Nigeria Communications Plc (MTN Nigeria) to support the telecommunications company’s network expansion programme. The investment will aid the acceleration of 4G coverage in Nigeria and expand broadband access in line with MTN’s Ambition 2025 strategy.
This transaction represents EIB’s largest financing for mobile telecoms network expansion in Africa and is consistent with MTN Nigeria’s digital transformation and inclusion efforts. It will improve network capacity across the country to accommodate rising data traffic, and enhance coverage in Lagos and Ogun States.
Karl Toriola, Chief Executive Officer, MTN Nigeria, said, “We are committed to leading digital solutions for Nigeria’s progress. This requires the continuous upgrade and expansion of our infrastructure to enable us to deliver superior service. The EUR 100 million financing agreed with the EIB will accelerate 4G coverage, enhance network capacity and drive innovation that will benefit our customers.”
“Accelerating large scale investment in telecom networks is essential to ensuring reliable access and enabling daily living and economic activity. 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 programme,” said Ambroise Fayolle, EIB Vice President.
“Digital transformation offers Africa tremendous opportunities, and digitilisation is one of the priorities of the European Union partnership with Africa. This record support for investment in MTN Nigeria by the EIB, the EU Bank, will deliver better services, unlock economic opportunities and improve lives across Nigeria,” said H.E. Samuela Isopi, Ambassador of the European Union to Nigeria and ECOWAS.
Over the last five years, the EIB’s support for digitalisation across Africa has reached more than EUR 2.5 billion of transformational investment.
About EIB Global
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
MTN Nigeria is one of Africa’s largest providers of communications services, connecting over 74 million people in communities across the country with each other and the world. Guided by a belief that everybody deserves the benefits of a modern connected life, MTN Nigeria’s leadership position in coverage, capacity and innovation has remained constant since its launch in 2001. MTN Nigeria is part of the MTN Group - a multinational telecommunications group, which operates in 19 countries in Africa and the Middle East.
The European Investment Bank signed the Nigeria Framework Loan which will provide up to EUR 240m to three Nigerian banks: FirstBank of Nigeria, Guaranty Trust Bank and Stanbic IBTC. The funding will be used to facilitate private and public private partnership infrastructure in the country and ensure continued investment in the sector.
The EIB and the African Development Bank have agreed to support the creation of the new Development Bank of Nigeria to strengthen lending for business and agriculture investment in the country. The EIB has finalized a US $20-million equity stake in the new financing institution, alongside US $50-million equity participation from the African Development Bank.
At the EU-Nigeria Strategic Meeting, European Commissioner for International Partnerships, Jutta Urpilainen announced, together with Minister of Budget and Economic Planning of Nigeria, Abubakar Atiku Bagudu, a financial package for a total of over €900 million (₦728 billion). Together with Team Europe, this major package forms a central part of the EU-Nigeria cooperation to advance the country’s green, resilient, digital inclusive transition under Government priorities and Global Gateway, the EU’s positive offer to deliver sustainable and trusted connections with partner countries.