Pan African Towers (PAT), a prominent digital infrastructure company in Nigeria, has announced a strategic investment from Development Partners International (DPI) and Verod Capital. DPI and Verod are set to invest in PAT to support its ongoing growth and collaborate with management to build on its recent achievements, solidifying its position as Nigeria’s largest homegrown digital infrastructure provider.
Background and Success of PAT
Established in Nigeria in 2017, PAT capitalized on the increasing demand for wireless communications across Africa. The company has become a leading telecommunications and tower infrastructure provider in Nigeria, playing a crucial role in the nationwide expansion of mobile communications. PAT’s successful business model focuses on establishing tailored, long-term contracts with blue-chip customers, including Nigeria’s leading mobile network operators (MNOs) and internet service providers (ISPs).
Under the leadership of Chief Executive Azeez Amida, PAT has experienced accelerated success, with a strong track record of executing growth strategies in emerging market telecommunications.
Nigeria’s Growing Digital Infrastructure Market
Nigeria stands out as an attractive market for digital infrastructure in Africa, boasting the continent’s leading telecommunications market by the number of mobile subscribers (208 million) and contributing significantly to the national GDP. Despite having 41,120 towers supporting 3G and 4G technology, there remains a substantial gap of more than 30,000 towers needed to meet the demand for proper quality and coverage for 4G and 5G technology.
Investment Objectives
The strategic investment from DPI and Verod will enable PAT to capitalize on the vast opportunities in Nigeria’s digital infrastructure market. PAT aims to address the tower supply gap, providing world-class digital infrastructure to support Africa’s economic development.
Azeez Amida, CEO of Pan African Towers, expressed excitement about the partnership with DPI and Verod, emphasizing PAT’s mission to accelerate the Nigerian market and support the growth of the mobile telecommunications sector. The company also aims to actively reduce its carbon footprint, upholding best-in-class Environmental, Social, and Governance (ESG) practices.
Accelerating PAT’s Strategic Plan
PAT’s experienced management team will collaborate closely with DPI and Verod to accelerate its strategic plan. The partnership will leverage DPI and Verod’s expertise in market entry, operational efficiency, and talent management. With the support of both investors, PAT plans to deepen relationships with existing partners, expand its customer base, and grow its tower footprint to reach underserved parts of the country with low mobile and wireless penetration.
The investment will also benefit from DPI’s experience in scaling tower companies, drawing on its past success as the first institutional investor in Eaton Towers.
Adefolarin Ogunsanya, Partner at DPI, expressed excitement about partnering with PAT’s management team, highlighting the company’s potential in Nigeria’s digital innovation boom. Daniel Adeoye, Principal and Head of Investments at Verod Capital, emphasized Verod’s support for PAT’s growth during a period of increased data consumption and telecommunication expenses in Nigeria.
The strategic investment positions Pan African Towers for a transformative chapter of growth, further solidifying its role as a key player in Nigeria’s digital infrastructure landscape.
