Nigerian govt to review IHS Towers, MTN Group $6.2bn acquisition deal

The Nigerian government has said it will undertake a through assessment of $6.2 billion deal by MTN Group Ltd., Africa’s largest mobile operator acquire IHS Towers.

IHS, a leading independent owner and operator of telecommunications towers across Africa announced the deal in a statement on Tuesday,

Chairman & CEO of IHS Towers, Sam Darwish, said the deal combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms and underscores the strong connection between IHS Towers and the African continent.

“I would like to take this opportunity to thank our colleagues, customers, and partners for their support over the past 25 years, as IHS Towers has grown from a single tower in one market to an eleven-country portfolio of approximately 40,000 towers at its peak,” he said.

However, some stakeholders and analysts in Nigeria where IHS unarguably has its biggest operation had raised concerns over the deal.

They noted that that it may further consolidate the position of MTN Nigeria, the operating arm of MTN group in Nigeria to the disadvantage of other operators who are also using IHS Towers services.

In obvious response to the concerns, Dr. ‘Bosun Tijani, Nigeria’ Minister of Communications, Innovation and Digital Economy said in a statement on Tuesday said the impending acquisition of IHS Towers by MTN Group will be subjected to review.

Tijani said the review is to ensure that consumers are protected, safeguard investments and the long-term sustainability of the sector.

“Given the strategic importance of telecommunications infrastructure to national security, economic growth, financial services, innovation, and social inclusion, and 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 Ministry will undertake a thorough assessment of this development in collaboration with the relevant regulatory authorities to review its impact on the sector.

“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.

“We remain committed to maintaining a stable, transparent, and forward-looking policy environment that keeps Nigeria’s telecommunications industry on a strong and sustainable path, in alignment with our broader vision of building a robust digital economy.