Tizeti secures debt financing to expand internet access in Nigeria
Chapel Hill Denham's Nigeria Infrastructure Debt Fund has agreed to provide long-term financing to Tizeti, a West African solar-based internet service provider. This senior debt facility will support the expansion of Tizeti's cutting-edge broadband network across 15 states in Nigeria.
Kendall Ananyi, the founder and CEO of Tizeti, expressed, "We will utilize these funds to establish last-mile digital infrastructure, enhancing internet access in various Nigerian states, stimulating sustainable development, creating value, improving connectivity, and broadening digital inclusion. This expansion will extend our reach from five states, establishing us as the largest internet service provider in Nigeria in terms of coverage."
Tizeti claims to serve over three million subscribers in Nigeria, including residential users, businesses, and hotspot customers, through its extensive network of solar-powered base stations in five states. The funding will be used to construct new internet infrastructure and acquire additional equipment, enabling Tizeti to expand its services to Delta, Akwa Ibom, Cross River, Abia, Anambra, Imo, Enugu, Abuja, Kano, and Kaduna states.
In Nigeria, much like in many other developing nations, access to the internet is disproportionately favored for urban residents, leaving rural populations at a significant disadvantage. According to a recent study by the International Telecommunications Union, a staggering 77 percent of Nigerians living in rural areas lack internet connectivity. Furthermore, numerous Nigerian communities are in dire need of infrastructure that can deliver high-speed internet access. A study conducted by Speedtest indicates that Nigeria's average broadband internet speed stands at 20.97 megabits per second, which falls behind the broadband speeds in countries such as Congo, Togo, Burkina Faso, and several other African nations. This situation presents a compelling market opportunity for internet service providers like Tizeti, especially when supported by NIDF, Nigeria's largest and Africa's first publicly-listed infrastructure fund.