• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Companies

MTN Nigeria to save N100 billion annually from renegotiated Tower Leases

Chike Olisah by Chike Olisah
August 19, 2024
in Companies, Company News, Sectors, Tech News
MTN Nigeria to save N100 billion annually from renegotiated Tower Leases
Share on FacebookShare on TwitterShare on Linkedin

MTN Nigeria has renegotiated its tower lease agreements with IHS Towers, a strategic move that is expected to save the telecoms giant approximately N100 billion annually.

This renegotiation is part of the company’s ongoing efforts to enhance its financial performance amidst the challenging business environment in Nigeria.

The telecoms giant stated that the revised terms will significantly reduce its exposure to currency fluctuations and lower overall costs, providing a substantial boost to its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin.

RelatedStories

Trump halts tariff hikes on most trade partners, raises China duties to 125% 

Trump sets August 1 tariff deadline as global trade talks intensify 

July 7, 2025
CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 

CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 

July 7, 2025

Recall Nairametrics earlier reported that the company said it has renegotiated the binding commercial terms of the existing infrastructure sharing and master lease agreements with IHS and ATC Nigeria. However, details of the cost savings were just released in the financial report of MTN Group

Key Highlights of the Renegotiation

The revised agreements between MTN Nigeria and IHS Towers have introduced several significant changes aimed at reducing operational costs and mitigating the impact of currency fluctuations.

  • The most notable change is the reduction of the US dollar-indexed component of the leases, which has now been linked to a discounted U.S. consumer price index (CPI).
  • This shift is crucial in lowering MTN Nigeria’s exposure to the volatile naira, providing the company with more predictable and stable cost structures.
  • Additionally, the renegotiated terms have removed technology-based pricing, a move that simplifies MTN Nigeria’s cost framework.
  • Under the new terms, payments for upgrades will now be based on tower space and power consumption, rather than the technology deployed on the towers.
  • This change is expected to bring more clarity and control over the company’s expenditure on infrastructure.

Another critical aspect of the renegotiation is the introduction of an energy cost component indexed to the cost of providing diesel power.

Given Nigeria’s unreliable power supply, telecom companies like MTN Nigeria rely heavily on diesel generators to power their infrastructure.

By indexing energy costs to diesel prices, MTN Nigeria can better manage these expenses, which have been a significant burden on its operations.

Moreover, the revised agreements include provisions for discounts and incentives over the life of the contracts, further enhancing the financial benefits for MTN Nigeria.

Financial Impact and Outlook

MTN Nigeria expects the renegotiated terms to significantly boost its EBITDA margin by 3-4 percentage points for the full year 2024, with an estimated annualized benefit of N100-110 billion.

  • For FY 2024, the financial uplift is projected to be between N75-85 billion. These savings come at a critical time for MTN Nigeria, as the company continues to navigate the complexities of the Nigerian market, including high operational costs, currency volatility, and regulatory pressures.
  • The telecoms giant has been grappling with a negative equity position and is actively working to restore its balance sheet to health.
  • The renegotiated tower leases are a key part of this strategy, as they provide substantial cost savings that can be redirected towards other critical areas of the business, such as network expansion and service improvements.

Strategic Initiatives and Industry Recovery

The renegotiation of tower leases is not an isolated effort but part of a broader strategy by MTN Nigeria to restore profitability and ensure long-term sustainability.

  • The company has emphasized the importance of tariff increases in achieving these goals, citing the need for a more sustainable pricing structure in the telecoms industry.
  • MTN Nigeria is currently in discussions with regulatory authorities to address this issue, with the aim of reaching a consensus that balances the interests of consumers and the need for continued investment in infrastructure.
  • As MTN Nigeria continues to implement its strategic initiatives, the savings from the renegotiated tower leases will play a crucial role in supporting the company’s financial recovery.
  • The expected annual savings of N100 billion will not only bolster MTN Nigeria’s EBITDA margin but also free up resources for further investments that are essential to maintaining its leadership position in the Nigerian telecoms market.

MTN Nigeria share price closed at N199.8 per share.


Follow us for Breaking News and Market Intelligence.
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

Related Posts

Trump halts tariff hikes on most trade partners, raises China duties to 125% 
Economy

Trump sets August 1 tariff deadline as global trade talks intensify 

July 7, 2025
CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 
Companies

CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 

July 7, 2025
Countries with the highest air ticket charges for international departures in Africa 2024 
Aviation

Countries with the highest air ticket charges for international departures in Africa 2024 

July 7, 2025
20 years of digital leadership: Layer3’s legacy and the road ahead 
Companies

20 years of digital leadership: Layer3’s legacy and the road ahead 

July 7, 2025
AfriGO, Nigeria’s Domestic Card Scheme gains momentum in financial inclusion  
Companies

AfriGO, Nigeria’s Domestic Card Scheme gains momentum in financial inclusion  

July 7, 2025
NIPOST denies drug trafficking report, says it never linked courier abuse to Tinubu’s administration 
Business News

NIPOST denies drug trafficking report, says it never linked courier abuse to Tinubu’s administration 

July 7, 2025
Next Post
FG to grant tax breaks to companies employing more staff – Wale Edun 

FG to begin sales of crude oil to Dangote refinery in Naira from October 1 - Wale Edun  

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Trump sets August 1 tariff deadline as global trade talks intensify 
  • CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 
  • Countries with the highest air ticket charges for international departures in Africa 2024 

Follow us on social media:

Recent News

Trump halts tariff hikes on most trade partners, raises China duties to 125% 

Trump sets August 1 tariff deadline as global trade talks intensify 

July 7, 2025
CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 

CapitalSage Holdings appoints former ETG Executive Tarun Chawla as Executive Director to lead agri-commodities and FMCG subsidiaries 

July 7, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics