The Federal Authorities has introduced plans to topic the proposed $6.2 billion acquisition of IHS Holding Restricted by MTN Group to a complete regulatory assessment, citing the vital position of telecoms infrastructure in Nigeria’s economic system and nationwide safety structure.
This was in accordance with a press assertion by the Minister of Communications, Innovation and Digital Economic system, Bosun Tijani, on Tuesday.
The transaction, structured as an all-cash deal, would see MTN Group take full possession of IHS and delist the tower firm, changing it into a completely owned subsidiary.
MTN already holds a big minority stake in IHS, considered one of Africa’s largest impartial tower operators with tens of hundreds of websites throughout main markets, together with Nigeria.
What the assertion says
Within the assertion, Tijani stated the federal government was carefully watching developments across the transaction.
- “The Federal Ministry of Communications, Innovation & Digital Economic system notes current developments within the Nigerian telecommunications sector concerning the acquisition of IHS Towers by MTN Group,” the minister acknowledged.
He famous that previously two years, beneath the administration of Bola Tinubu, reforms have been launched to stabilise and reposition the telecoms sector as a key pillar of Nigeria’s digital economic system.
“By means of coverage readability, regulatory help, and sustained engagement with business stakeholders, authorities has prioritised long-term sustainability, investor confidence, and improved sector efficiency,” Tijani stated.
Why the deal faces nearer scrutiny
The minister made it clear that the proposed acquisition wouldn’t be handled as a routine company transaction as a result of sensitivity of telecoms infrastructure property.
- “Given the strategic significance of telecommunications infrastructure to nationwide safety, financial development, monetary providers, innovation, and social inclusion, and to make sure strategic actions by non-public sector operators are in keeping with the market improvement agenda beneath the Renewed Hope coverage instructions of the President, the Ministry will undertake a radical evaluation of this improvement in collaboration with the related regulatory authorities to assessment its impression on the sector,” he acknowledged.
Nigeria’s telecoms community underpins banking techniques, fintech platforms, e-commerce, public service supply and rising digital applied sciences. Management of tower property subsequently carries implications that reach past industrial returns.
Tijani acknowledged that the sector has lately proven indicators of restoration, citing improved monetary efficiency amongst operators.
- “Latest monetary outcomes introduced by key operators point out a return to improved profitability, elevated funding in telecoms infrastructure and operational stability throughout the sector,” he stated.
- “This progress displays the resilience of the business and the impression of reforms aimed toward guaranteeing its viability and capability to proceed delivering significant connectivity to Nigerians.”
He burdened that the federal government’s goal is to make sure that any consolidation protects customers and sustains long-term sector well being.
- “Our goal is obvious: to make sure that any market consolidation or structural adjustments shield customers, safeguard investments, and protect the long-term sustainability of the sector,” the minister stated.
What it’s best to know
BusinessTimes earlier reported that MTN Group reached an settlement to amass IHS Towers, one of many world’s largest impartial house owners and operators of shared telecom infrastructure, in an all-cash transaction that values the corporate at an enterprise worth of roughly $6.2 billion.
The deal follows weeks of negotiations between each events, which had been publicly reported earlier this month.
Beneath the phrases of the merger settlement, IHS shareholders will obtain $8.50 per strange share in money, representing a 36% premium to its 52-week volume-weighted common value, and a modest 3% premium to its unaffected closing value of $8.23 on February 4, 2026.
