See why Michael Adenuga’s Globacom cannot afford 9mobile

There have been rumours that Globacom was the anointed one to acquire 9mobile but NCC reacts, while Globacom also reacts to the report for media not to choose the company as the preferred bidder anointed to acquire 9mobile.

In this article, you will know the full reasons why Globacom cannot afford 9mobile as reported by Insiders.

The Nigeria Billionaire, Michael Adenuga, has millions of dollars unpaid in telecommunications fee due to federal government of Nigeria and even the telecommunications debt made Benin Republic removed him from operating, suggests that he is cash-scrapped.

Glo is yet to pay the $282 million dollars for its GSM renewal fee that expired last year which is always renewed in every 10 years. Glo was also unable to pay N1.4bn owed the NCC for the frequency spectrum license it holds which expired on November 2017.

Globacom company was tossed out of Benin republic in December after it failed to renew its operational license. It had up to 1.6 million subscribers in 2015. Some sources familiar with the company operation revealed that Glo financial troubles has been mounting for a while.

Also recall that Globacom holds Nigeria’s second National operators license and had been unable to fund the deployment of fixed land lines as stipulated under the terms of the license due to cash constrains.

In 2001, his first attempt to acquire a GSM license under his investment vehicle was a complete disaster, which costs him to lose his bid deposit of $20m due to his inability to pay the $265m license fees within the timeline set by the government during Nigeria’s first open GSM license auction.

So, how Adenuga plans to raise at least $1bn to acquire 9mobile, which owns a consortium of Nigeria banks about $1.2bn in loan, with its crippling indebtedness to government remains a facade.

What’s your say about this? Do you think that Globacom can still buy or acquire 9mobile after all the debts with the Nigeria government?

6 Comments

  1. With this information, uhm! I don’t think they can go ahead, i think they should withdraw themselves from the stake bidders.. Their debt is too much for them now..

  2. Torr! We can’t justify the motion now.. Despite the fact that they are owing a lot of money , they could still make only by God grace.. So let’s keep on waiting… And I wish them best of luck.

  3. It’s very terrible for them to acquire the 9mobile, due to this heavily money they owed! Except by God grace.. They can’t make it.
    Thanks a lot for the info boss.

  4. wow! the money they owe is gargantuan! what a stopping block to their acquiring 9mobile. I’m sure he thought of this before attempting to acquire 9mobile. well I wish them good luck

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