Integrated IT solutions firm, Dimension Data Nigeria, has raised N20 billion via a bond programme executed under Dimension Data SPV Funding Plc.
According to a statement from the company, this followed an approval from the Securities and Exchange Commission (SEC).
The company said the capital raise is intended to support long-term investments in critical infrastructure needed to power Nigeria’s digital economy.
What they are saying
Speaking at the documentation and regulatory clearances event held in Lagos, Managing Director of Dimension Data Nigeria, Gbenga Olabiyi, explained that the capital raise is focused on long-term value creation.
- “Sustained infrastructure investment is essential to maintaining competitiveness and unlocking future growth.
- “When deployed thoughtfully, infrastructure secures the business, future-proofs operations, and allows efficient scaling as data demand and complexity increase,” Olabiyi said.
According to the company, these constraints raise operating costs, weaken service quality, and slow the pace of digital transformation.
The bond programme is designed to expand network capacity, improve resilience, and support carrier-grade and enterprise services required to meet growing data consumption.
The bond programme was backed by private equity firm Mbavaa Partners Limited, whose Managing Partner, Shatse Kakwagh, described the transaction as a milestone for the company.
- “This is a journey we began years ago, and it proves that the opportunities we see in the market can be realised,” Kakwagh said, adding that the programme enables the company to secure long-term capital needed to finance aggressive growth plans across Nigeria and potentially the wider African market.
He noted that the bond programme received strong ratings and that the first issuance was heavily oversubscribed, signalling robust investor confidence in the company’s strategy and execution capacity.
A consortium of financial and professional service firms supported the transaction. These include Pathway Advisors Limited as Book Runner; Greychapel Legal and Alliance Law Firm as Solicitors; CardinalStone Registrars Limited and STL Trustees Limited as Registrar and Trustees; Deloitte & Touche as Reporting Accountant alongside Mascot Okpori & Co as Auditors; Fidelity Bank as Receiving Bank; and Agusto & Co as Rating Agency.
Get up to speed
Nigeria continues to face major digital infrastructure shortfalls, including limited metro and last-mile fibre coverage, constrained enterprise connectivity, and rising demand driven by cloud services, fintech, digital public platforms, and artificial intelligence.
- This has also prompted the Federal Executive Council (FEC) to approve the establishment of a special purpose vehicle (SPV) in May last year to facilitate the deployment of 90,000 kilometers of fibre cable across the country.
- The project, which was later dubbed Project Bridge, is expected to increase internet penetration in Nigeria to over 70% and reduce the cost of access to the internet by over 60%.
- Through the project, the Minister of Communications, Innovation, and Digital economy, Dr. Bosun Tijani said Nigeria would achieve the inclusion of at least 50% of the 33 million Nigerians currently excluded from access to the internet.
It is also expected to deliver up to 1.5% of GDP growth per capita raising GDP from $472.6 billion (2022) to $502 billion over the next 4 years.
What you should know
Last year, the Ministry opened an investor consultation process, inviting private sector players to express interest in its planned SPV.
According to the Ministry, the project will be executed under a Public-Private Partnership (PPP) model, with the Nigerian government retaining a stake of between 25% and 49% in the SPV.
The SPV will operate as an independent limited liability company, managed by a board of directors with expertise in telecommunications, infrastructure, and finance.
