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Nigeria Flags Full Review of $6.2bn MTN–IHS Acquisition
The Federal Government of Nigeria has announced plans to conduct a comprehensive review of the proposed $6.2 billion acquisition of IHS Holding Limited by MTN Group, citing the strategic importance of telecommunications infrastructure to the country’s economy and national security.
RELATED: MTN Group to acquire IHS Towers’ African operations in $6.2bn deal, move to full ownership
The planned review follows MTN Group’s agreement to acquire IHS Holding Limited in an all-cash transaction valued at $6.2bn, a deal that would see the tower company delisted and become a wholly owned subsidiary of the telecoms giant.
Government Confirms Monitoring of MTN–IHS Transaction
In a statement issued on Tuesday, the Federal Ministry of Communications, Innovation and Digital Economy said it was closely monitoring developments surrounding the transaction.
The statement, signed by the Minister, Bosun Tijani, noted that the government recognises the scale and significance of the deal within Nigeria’s telecommunications landscape.
“The Federal Ministry of Communications, Innovation and Digital Economy notes recent developments in the Nigerian telecommunications sector regarding the acquisition of IHS Towers by MTN Group,” the statement said.
Telecom Sector Reforms Under Tinubu Administration
According to the minister, the review aligns with broader reforms undertaken over the past two years under the leadership of Bola Tinubu, aimed at stabilising and strengthening telecommunications as a cornerstone of Nigeria’s digital economy.
He explained that through policy clarity, regulatory support and sustained engagement with industry stakeholders, the administration has prioritised long-term sector sustainability, investor confidence and improved performance across the telecom value chain.
MTN already holds a significant minority stake in IHS, one of Africa’s largest independent tower operators, with tens of thousands of towers deployed across key markets, including Nigeria.
Why the Federal Government Is Reviewing the Deal
The ministry said the review will assess the transaction’s economic, competitive and security implications, given the central role telecom infrastructure plays in economic growth, financial services, innovation and national security.
According to the government, the review will focus on:
- Ensuring that major ownership consolidations align with national interests and sustainable market development.
- Protecting consumers while safeguarding existing and future investments in the telecoms sector.
- Preserving competitive balance in a market that relies heavily on shared infrastructure.
The process will involve relevant agencies, including the Nigerian Communications Commission and competition authorities, as part of standard merger control and regulatory oversight procedures.
Strategic Importance of the MTN–IHS Deal
The proposed acquisition is regarded as one of Africa’s largest telecom infrastructure transactions, combining MTN’s position as the continent’s leading mobile network operator with IHS’s expansive tower portfolio.
IHS operates tens of thousands of telecom towers across multiple African countries, serving as a backbone provider for mobile connectivity in Nigeria and beyond.
For MTN, full ownership of IHS is expected to:
- Provide direct control over critical passive infrastructure, rather than reliance on leased assets;
- Reduce long-term operational and lease-related costs;
- Support future network expansion, including 5G rollout and broadband growth, which require tighter infrastructure integration.
Market Concerns and Competition Considerations
Industry analysts have noted that such a large-scale consolidation could reshape the tower leasing and infrastructure-sharing market.
Concerns raised include the potential to:
- Alter competitive dynamics, especially for smaller operators dependent on shared tower assets;
- Influence pricing and access to passive infrastructure critical for network expansion.
These considerations, analysts say, explain why the government’s review will go beyond financial metrics to include competition, access and long-term market health.
What Happens Next
The review process, to be conducted in collaboration with regulatory and competition bodies, is expected to take time as part of standard due diligence for major mergers and acquisitions.
For now, the MTN–IHS transaction remains subject to regulatory approvals and customary closing conditions, with both companies targeting completion of the deal in 2026, pending government and shareholder clearances.
