Nigeria’s leading solar-based internet service provider, Tizeti, has secured a long-term debt financing deal from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF). The company plans to use the funds to expand its broadband network across 15 states in the country, reaching millions of new customers.
Tizeti currently serves over 3 million subscribers in five states, offering unlimited data and streaming at affordable prices. The company operates a network of solar-powered base stations that reduce its operational costs and environmental impact. With the new financing, Tizeti will build new internet infrastructure and purchase additional equipment to extend its services to Delta, Akwa Ibom, Cross River, Abia, Anambra, Imo, Enugu, Abuja, Kano, and Kaduna.
The deal comes when Nigeria is implementing a National Broadband Plan (NBP 2020-2025) with a target of achieving 70% broadband penetration by 2025. According to the latest data from the Nigerian Communications Commission (NCC), the country’s broadband penetration stood at 48% in January 2023, with 92 million subscriptions. However, there is still a huge digital divide between urban and rural areas, as well as between different regions of the country.
Tizeti’s founder and CEO, Kendall Ananyi, said that the partnership with NIDF will help the company address the digital exclusion barriers in Nigeria and catalyze sustained development, value creation, improved connectivity, and a deeper and wider digital inclusion net. He added that the company will also increase its coverage from five states and become the largest internet service provider in Nigeria by coverage.
Anshul Rai, the CEO of NIDF, said that Chapel Hill Denham is excited to partner with Tizeti to expand a fast, reliable broadband network across Nigeria. He said that the digital economy is a key strategic pillar for Nigeria to accelerate its economic and social development, and providing access to affordable internet services is crucial to achieving the true potential of digitization. He also said that NIDF will continue to work with all stakeholders to support the accelerated development of digital infrastructure in Nigeria by providing access to long-term, Naira-denominated financing for such projects.
Tizeti’s debt financing deal is one of the latest examples of how local and international investors are supporting the growth of Nigeria’s tech sector. In October 2023, Flutterwave, a Nigerian fintech company that provides payment solutions across Africa, raised $200 million in a Series C round led by US-based Avenir Growth Capital and Tiger Global. In September 2023, Kuda Bank, a Nigerian digital bank that offers zero-fee banking services, raised $55 million in a Series B round led by Valar Ventures and Target Global.
These investments reflect the increasing demand for digital services in Nigeria, especially amid the COVID-19 pandemic that has accelerated the adoption of online platforms for education, health care, entertainment, commerce, and social interaction. According to DataReportal, there were 122.5 million active internet users in Nigeria in January 2023, representing 55.4% of the total population. The number of internet users increased by 2.9 million between 2022 and 2023.
As more Nigerians get online, Tizeti’s expansion will enable them to access high-quality and affordable internet services that can improve their lives and livelihoods. The company’s vision is to become one of Africa’s top internet service providers by leveraging solar energy and innovative technology.
Source: Nairametrics
