Nigeria Reviews MTN Group’s $6.2B IHS Deal Citing Strategic Telecom Infrastructure Concerns
Federal Government Initiates Regulatory Review of MTN’s Proposed IHS Towers 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, highlighting the strategic importance of telecommunications infrastructure to national security, economic growth, competition and long-term sector sustainability. This announcement was made on 18 February 2026 by Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, in an official statement.
The transaction, structured as an all-cash deal, would see MTN take full control of IHS one of Africa’s largest independent tower operators. Under the agreement, IHS would be delisted and converted into a wholly owned subsidiary of MTN Group, a move already endorsed by IHS’s board and shareholders.
Government’s Position and Review Rationale
The communications ministry said the review will be conducted in collaboration with relevant regulatory authorities, including the Nigerian Communications Commission and competition authorities. The ministry underscored the strategic sensitivity of telecom infrastructure assets, which underpin critical national systems such as banking, fintech platforms, public services, and mobile connectivity.
In his statement, Dr Tijani noted that while the sector has shown signs of recovery including improved profitability and increased investment the proposed merger must align with Nigeria’s broader digital economy agenda and sector development objectives under the Renewed Hope policy framework of President Bola Ahmed Tinubu. The government’s stated objective is to ensure that market consolidation preserves competition, protects consumers, safeguards investment, and sustains long-term sector health.
Strategic Importance of Telecom Infrastructure
Telecommunications infrastructure, particularly tower assets, constitutes the backbone of digital connectivity in Nigeria and across Africa. Towers facilitate mobile voice and data services, broadband expansion, digital financial transactions, and emerging technologies such as 5G and Internet of Things (IoT). The minister’s emphasis on thorough scrutiny reflects concerns that concentration of infrastructure ownership could reshape competitive dynamics, influence access and pricing, and carry implications for smaller network operators that currently depend on shared infrastructure.
Industry observers previously raised concerns that MTN’s acquisition could lead to infrastructure control asymmetry, potentially influencing pricing and access terms for other operators reliant on IHS tower facilities. Such concerns are among the factors the government intends to assess as part of the review process.
Transaction Overview
MTN’s proposed acquisition of IHS Towers is valued at approximately $6.2 billion and involves an all-cash purchase of the remaining stake in the company that MTN does not currently own. IHS operates tens of thousands of tower sites across key African markets, including Nigeria. Under the terms reported, IHS shareholders would receive $8.50 per ordinary share, representing a notable premium to historical stock prices.
Once completed, the acquisition would mark a shift from MTN’s previous asset-light model in which passive infrastructure was owned by a third party toward direct control of key infrastructure assets. This strategic realignment is expected to provide MTN with greater operational flexibility for future network expansion and technology deployment.
Implications for Sector Policy and Investment
For policymakers and investors, the review signals a careful balancing act attracting private capital and consolidation that can support infrastructure development while safeguarding competitive market conditions and consumer interests. A positive regulatory outcome could streamline future large-scale transactions and encourage further investment into Nigeria’s digital economy. Conversely, protracted scrutiny or conditions imposed on the deal may influence investor perceptions around regulatory certainty in the telecoms sector.
The outcome of the review will be closely watched by sector stakeholders, given its potential to shape Nigeria’s telecom infrastructure landscape and broader investment climate.
The Federal Government’s decision to subject MTN Group’s proposed acquisition of IHS Towers to thorough regulatory review reflects the strategic importance of telecommunications infrastructure in Nigeria’s economic and digital development. By emphasising national security, market competition and long-term sustainability, the review process underscores the government’s commitment to aligning private sector consolidation with national policy objectives, investor confidence and inclusive market growth. The final regulatory determination will provide important clarity on the transaction’s viability and its implications for the future of Nigeria’s telecom ecosystem.
