The Nigerian-based conglomerate Transnational – Transcorp – has bought Nigerian Telecommunications – Nitel – and its mobile subsidiary Mtel, for $750m.

According to Transcorp, the deal represents a “milestone in the privatisation process of the dominant fixed-line operator”.

Nitel currently holds close to 80 per cent of Nigeria’s domestic market with presence in all its 36 states.

According to a statement released by Transcorp, the company will spend up to $1bn over the next two years to increase Nitel’s capacity and growth. It intends to transform Nitel into a wireless, broadband, video, voice and data player, according to the statement.

Transcorp has entered into a memorandum of understanding with BT in operational and management duties during the transition, Transcorp said, citing BT’s experience in setting up telecoms infrastructure.