NIGERIA TELECOM EXPANSION

Promoter – Financial Intermediary

MTN NIGERIA COMMUNICATIONS PLC

Location

• Nigeria

Description

The EIB will finance the upgrade of the promoter's 4G core mobile broadband network, as well as expand the radio network coverage from 90% to 98% of the population in the Lagos region.

Additionality and Impact

The project is aligned with the Cotonou (ACP-EC) partnership agreement from 2000 and addresses the specific market failure leading to under-investment in broadband network infrastructures in lower profitability areas, mainly due to low average revenue per user levels, combined, in the case of hard to reach areas, with high unit costs for the infrastructure. The project will not have relevant negative environmental and social impacts. On the other hand, the roll-out of the infrastructure will support the country's transition to a digital economy, resulting in significant positive social impacts through increased 4G coverage (fourth generation of mobile phone technology). Mobile communication technologies have been shown to enable positive environmental impacts related to climate change mitigation and adaptation in other sectors of the economy. The promoter and its main supplier for the project are reputable companies with high capacity,which ensures high quality and cyber-secure digital services. The sizeable hard currency loan provided by the European Investment Bank with a relatively long maturity and grace period will enable the promoter to secure equipment internationally in order to implement the Project in line with best practices.

Objectives

The aim is to address the increased growth expected in mobile data applications, as well as the necessary upgrades in terms of capacity and functionality of the core network and business support systems. Thanks to the project, mobile broadband services will reach most of the remaining areas in the region that do not yet have access to the service.

Sector(s)

• Telecom - Information and communication

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 200 million

Environmental aspects

If it were located within the EU, the project would not require a mandatory Environmental Impact Assessment (EIA), as it does not fall under Annex I or II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. Typically, the rollout of mobile telecommunication networks have limited environmental and social negative effects. Moreover, in this case the promoter will rely on existing mobile sites in which it will install new equipment. Full environmental and social details will be assessed during appraisal.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 15/11/2021