Nigeria’s Ministry of Communications, Innovation, and Digital Economy has announced it will review MTN Group’s proposed $2.2 billion acquisition of IHS Towers, a deal that would give Africa’s largest mobile operator full control of one of the continent’s most extensive tower networks.
In a statement on Tuesday, Minister Bosun Tijani said the ministry would carry out a “thorough assessment” of the transaction alongside relevant regulators, citing the strategic importance of telecoms infrastructure for national security, financial services, and economic growth. “Our objective is clear: to ensure that any market consolidation or structural changes protect consumers, safeguard investments, and preserve the long-term sustainability of the sector,” he added.
The ministry’s intervention highlights how sensitive infrastructure consolidation has become in Nigeria’s recovering telecoms market. Operators and tower companies have faced years of currency volatility, rising tower lease costs, and debt pressures. Regulators now face the delicate task of balancing investor confidence, competition, and national interest.
MTN confirmed on Tuesday that it had agreed to acquire all outstanding IHS shares it does not already own at $8.50 per share, valuing the company at roughly $6.2 billion. The move would take the company private and raise MTN’s stake from 24.7% to 100% through a cash merger. The acquisition would consolidate nearly 29,000 telecom towers across Africa under MTN’s control, strengthening its network operations in Nigeria, the company’s largest market.
The $2.2 billion acquisition is expected to be funded using approximately $1.1 billion in cash from IHS’s balance sheet, along with available liquidity and additional debt at the group level. The deal represents one of the most significant shifts in Nigeria’s telecom infrastructure in over a decade. For years, operators sold tower assets to firms like IHS to reduce capital expenditure and focus on customer growth. MTN’s reversal of that approach reflects a strategic recalibration amid rising profitability pressures.
IHS Towers also serves other operators, including Airtel Nigeria. Securing the company would not only give MTN direct control of its own infrastructure but could also provide a competitive edge over rivals in the Nigerian market. MTN currently commands 52% of Nigeria’s mobile market, while Airtel trails at nearly 34%. The company has previously entered infrastructure-sharing agreements with competitors, allowing others to use its towers where coverage gaps exist.
The broader context for the acquisition is challenging. Over the past two years, Nigerian telecom operators have grappled with naira devaluation and dollar-denominated tower lease obligations. MTN Nigeria and Airtel Africa reported steep foreign exchange losses in 2023 before returning to profitability thanks to tariff adjustments and cost restructuring.
For IHS, Nigeria remains its largest market but also one burdened by currency headwinds and high operating costs. Completing the acquisition would mark not just a corporate transaction but a structural shift in how telecom infrastructure is owned, financed, and managed in Africa’s biggest telecom economy.