MTN Nigeria is one of the continent`s success stories. In spite of an almost complete lack of infrastructure in Nigeria, it is one of Africa`s fastest growing GSM networks experiencing 90% growth over the last financial year.
The challenge facing MTN Nigeria is to continue to support this massive growth while optimising the costs inherent in deploying and maintaining a GSM network.
"While other network operators in Africa have, at times, fallen victim to an `expand at all costs` mentality, the MTN board regards good corporate governance as the overriding strategic business imperative," says Sifiso Dabengwa, MD of MTN Nigeria. "This approach has enabled us to become the number one network operator in Nigeria while achieving our profit targets."
As with any telecommunications network, the business initially focused on the rapid deployment of the GSM network. However, the complexities of the environment required MTN to deploy its own power system and microwave transmission backbone. MTN Nigeria provides coverage to approximately 50% of the population and covers an area of some 170 000km^2. As the business matures, the focus is shifting towards the optimisation of the existing infrastructure.
MTN Nigeria requested proposals for a partner to assist it with this process. Lerumo was selected based on its track record in delivering holistic, end-to-end engineering asset management solutions.
"The Nigerian environment is particularly dependent on strong logistics understanding," says Jan Coetser, CEO of Lerumo, "due to the vast distances between centres and the reality that all spare parts must be imported."
Lerumo has considerable expertise in the management of engineering assets from purchase to disposal. Lerumo is working with key MTN Nigeria staff to put best-of-breed processes in place to manage the procurement and distribution of spare parts to cost-effectively ensure MTN meets its service level agreements while maximising cash flow.
Lerumo has previously delivered similar projects for various clients including the South African National Defence Force, Pilatus Aircraft Company (Switzerland), MAN Truck and Bus and Duferco Steel Processing.
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