Dimension Data Raises $2.9M For Fibre Expansion

Dimension Data Limited has completed a $2.9 million Series 1 bond issuance, marking the first drawdown under its $14.7 million bond programme to finance the expansion of fibre infrastructure across Nigeria.

The issuance follows regulatory approval earlier this year for the $14.7 million programme, which was established through Dimension Data SPV Funding Plc. The initial tranche represents just over one-fifth of the programme’s approved capacity, with additional issuances expected as projects progress.

A bond programme allows an issuer to raise capital over time rather than through a single transaction, drawing down approved amounts in multiple tranches as funding is required. The programme is housed in a special purpose vehicle, a separate legal entity commonly used in infrastructure finance to isolate debt obligations and protect investors by linking repayments to defined assets and cash flows.

Managing Director Olugbenga Olabiyi described the fundraising as an investment in Nigeria’s digital future.

“Beyond delivering technology solutions, we work every day to strengthen Nigeria’s digital economy,” Olabiyi said, adding that the investment would accelerate infrastructure supporting businesses, innovation and digital transformation.

He also acknowledged the advisers and financial partners that supported the transaction.

Subscription sends the strongest signal

The more revealing message came from the lead issuing house. Adekunle Alade, founder and chief executive of Pathway Advisors, thanked the high-net-worth investors who subscribed to the issuance, saying their participation reflected confidence in Dimension Data’s long-term prospects despite prevailing investor preference for shorter-term investments.

The remark highlights a broader financing challenge. With government securities offering attractive short-term yields, investors have little incentive to commit capital to infrastructure projects that generate returns over many years. Fibre networks require significant upfront investment before producing steady cash flows, making successful long-term fundraising a meaningful market signal rather than a routine transaction.

Shatse Kakwagh, managing partner at Mbavaa Partners and a director of the SPV, described the transaction as the culmination of a two-year effort.

“This funding is not the destination. It is the beginning of an even bigger journey,” he said.

Financing Nigeria’s fibre gap

The proceeds will fund metro and last-mile fibre expansion, strengthen enterprise and carrier-grade connectivity, and improve network resilience as demand grows from financial institutions, fintechs, enterprises and other data-intensive users.

The investment targets one of Nigeria’s weakest digital infrastructure layers. According to Nigerian Communications Commission data, the country has approximately 154.7 million internet subscriptions but only about 156,662 fixed-wired connections, underscoring the country’s overwhelming reliance on wireless connectivity. Yet mobile networks themselves depend on fibre backhaul, while banks, data centres and enterprise customers require dedicated, resilient fibre networks to support mission-critical services.

Operators also continue to grapple with frequent fibre cuts that disrupt services and increase operating costs, one of the reasons telecommunications infrastructure now enjoys Critical National Information Infrastructure protection under executive order.

The next milestones will be measurable: when Dimension Data returns to the market for additional tranches under the $14.7 million programme, how much capital it ultimately raises, and whether that funding translates into new metro fibre routes, expanded last-mile connectivity and stronger network resilience across Nigeria.