FG to scrutinise MTN and IHS Tower’s $6.2bn proposed merger

The Federal Government of Nigeria has revealed plans to assess the proposed acquisition of IHS Towers by MTN Group over its future impact on the Nigerian telecoms industry. 

According to a disclosure made on Tuesday night by the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, the review is necessary to ascertain its impact on the long-term sustainability, investor confidence, and performance of the sector. The minister noted that the move forms part of efforts to stabilise and strengthen the telecoms sector as a critical pillar of Nigeria’s digital economy.

“The Ministry will undertake a thorough assessment of this development in collaboration with the relevant regulatory authorities to review its impact on the sector,” part of the statement reads.

The Minister acknowledged the recent financial turnaround enjoyed by Nigerian telecom operators after a period of operational losses and unfavourable macroeconomic conditions. With a turnaround market such as improved profitability, investment, and operational stability in the telecom sector, the government wants to ensure such stability is sustainable. 

While the telecoms industry stands as a pillar of national security, economic growth, innovation and financial services, the federal government wants to ensure that the MTN-IHS Tower merger does not jeopardise the sector’s resurgence. 

The Minister noted that the assessment is “to ensure strategic actions by private sector operators are in line with the  market development agenda under the Renewed Hope policy directions of the President.”

The MTN-IHS Tower proposed merger first came to light in early February when MTN disclosed its plan to acquire the remaining 75% stake in IHS Holdings to investors. 

On Tuesday, IHS Towers disclosed that its Board of Directors has “unanimously” approved the agreement and the transaction, and has recommended the same move to its stakeholders. The deal, valued at approximately $6.2 billion, will see MTN take full control of the entire stake.

Read More: MTN, IHS Towers strike $6.2 billion merger deal.

MTN-IHS Tower: Fears over competition sabotage 

Following the proposed deal, experts have raised concerns over the monopoly of MTN controlling tower infrastructure that serves other major network providers such as Airtel and T2mobile. The fear and unanswered questions extend to smaller network operators that depend on shared infrastructure. 

There were also concerns about how MTN’s control of a major tower company could create pricing or access barriers for rivals. Others felt this could reshape the industry dynamics to favour a player over another. 

For the federal government, these concerns are what it’s set to assess and address over the next few weeks.

“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,” the Minister said.

He added that the development was not a move to stand against the merger but an action to maintain a stable and transparent telecoms industry. It also forms part of the ambition to build a sustainable and strong digital economy. 

MTN and IHS Towers have a long-standing commercial relationship. The telco currently serves as IHS’s largest customer across several African markets as well as a major shareholder.

Over the past decade, MTN has sold thousands of passive network sites to IHS under sale-and-leaseback arrangements. In Nigeria, IHS owns and manages 47% of the 39,880 towers as of December 2024, which is the largest according to NCC’s 2024 Year-End Performance Report.

According to IHS Towers, the $6.2 billion merger is expected to be completed by the end of 2026.