The Federal Government of Nigeria has announced its intention to conduct a thorough assessment of MTN Group’s proposed acquisition of IHS Towers. This review, disclosed by Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, is deemed necessary to ascertain the deal’s impact on the long-term sustainability, investor confidence, and overall performance of the Nigerian telecoms sector. The government emphasizes that this move is part of a broader effort to stabilize and strengthen the telecoms industry, recognizing its critical role as a pillar of Nigeria’s digital economy, national security, economic growth, innovation, and financial services.

MTN Group, Africa’s largest mobile network operator, revealed plans to acquire the remaining 75% stake in IHS Towers, having already held approximately 24.7% ownership. The deal, which values IHS Towers at approximately $6.2 billion, involves MTN paying $2.2 billion in an all-cash transaction for the outstanding shares. This payment is expected to be sourced from MTN’s available liquidity and debt (approximately $1.1 billion), with another $1.1 billion coming from IHS’s own balance sheet. IHS Towers’ Board of Directors has unanimously approved the agreement, recommending it to its stakeholders, and the transaction is anticipated to be completed by the end of 2026, pending regulatory and shareholder approvals.

The acquisition marks a strategic reversal for MTN, which had previously sold thousands of its passive network sites to IHS over the past decade under sale-and-leaseback arrangements, retaining only about 25% ownership. This earlier divestment was part of a cost-cutting strategy and a shift to focus on core connectivity and digital services. However, MTN now views the full acquisition as a pivotal step to strengthen its strategic and financial position. MTN Group President and CEO, Ralph Mupita, highlighted that direct control over these towers would reduce long-term costs, increase operational flexibility, and enable better management of network rollout, including critical 5G and fibre expansions crucial for growing data demand. Jane Egerton-Idehen, MD/CEO of Nigerian Communications Satellite Limited (NIGCOMSAT), supported the move, stating it is a 'great way to mitigate the risk of managing the quality of the network,' ensuring stability, investment, and better service quality for subscribers, which justifies paying a premium.

The proposed merger has, however, sparked significant concerns within Nigeria’s telecoms industry regarding potential competition sabotage and the creation of a monopoly. Experts and industry players have voiced fears that MTN controlling such a substantial portion of tower infrastructure, which also serves other major network providers like Airtel and 9mobile (formerly T2mobile), could create pricing or access barriers for rivals, including smaller network operators. Given that tower companies typically operate as neutral entities, any shift in this structure requires careful scrutiny to preserve fair access, pricing transparency, and service quality across the industry. As of December 2024, IHS owns and manages 47% of Nigeria's 39,880 towers, making it a dominant infrastructure provider.

Nigeria’s Ministry of Communications, Innovation, and Digital Economy stated that its 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. The assessment will also ensure that strategic actions by private sector operators align with the market development agenda under the President’s Renewed Hope policy directions. The Minister clarified that the government’s intervention is not intended to oppose the merger itself but to maintain a stable and transparent telecoms industry, which is essential for building a sustainable and strong digital economy. The thorough review will examine competition concerns, infrastructure sharing obligations, and broader implications for investment and digital inclusion, potentially imposing additional conditions to ensure a level playing field.

Telecommunications towers are indispensable infrastructure, housing essential components such as masts, antennas, cooling systems, surveillance cameras, and Base Transceiver Stations (BTS). These facilities process signals, connect to fibre or microwave links, and enable seamless call and data transmission over long distances. They are vital for sending and receiving radio signals between mobile devices and the operator's core network. Due to Nigeria's inconsistent power supply, these towers require 24/7 operational capability, relying on alternative power sources like generators and solar power. The vulnerability of these sites to vandalism, as seen with MTN suffering 9,218 fibre cuts and 211 site attacks in 2025, further underscores the importance of securing and controlling this critical infrastructure to ensure quality service delivery and avoid customer complaints, which exceeded 1.6 million for MTN in the past year.