The Federal Government has announced plans to subject the proposed $6.2 billion acquisition of IHS Holding Limited by MTN Group to a comprehensive regulatory review, citing the critical role of telecoms infrastructure in Nigeria’s economy and national security architecture.
This was according to a press statement by the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, on Tuesday.
The transaction, structured as an all-cash deal, would see MTN Group take full ownership of IHS and delist the tower company, converting it into a wholly owned subsidiary.
MTN already holds a significant minority stake in IHS, one of Africa’s largest independent tower operators with tens of thousands of sites across major markets, including Nigeria.
What the statement says
In the statement, Tijani said the government was closely watching developments around the transaction.
- “The Federal Ministry of Communications, Innovation & Digital Economy notes recent developments in the Nigerian telecommunications sector regarding the acquisition of IHS Towers by MTN Group,” the minister stated.
He noted that in the past two years, under the administration of Bola Tinubu, reforms have been introduced to stabilise and reposition the telecoms sector as a key pillar of Nigeria’s digital economy.
- “Through policy clarity, regulatory support, and sustained engagement with industry stakeholders, government has prioritised long-term sustainability, investor confidence, and improved sector performance,” Tijani said.
Why the deal faces closer scrutiny
The minister made it clear that the proposed acquisition would not be treated as a routine corporate transaction due to the sensitivity of telecoms infrastructure assets.
- “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,” he stated.
Nigeria’s telecoms network underpins banking systems, fintech platforms, e-commerce, public service delivery and emerging digital technologies. Control of tower assets therefore, carries implications that extend beyond commercial returns.
Tijani acknowledged that the sector has recently shown signs of recovery, citing improved financial performance among operators.
- “Recent financial results announced by key operators indicate a return to improved profitability, increased investment in telecoms infrastructure and operational stability across the sector,” he said.
- “This progress reflects the resilience of the industry and the impact of reforms aimed at ensuring its viability and capacity to continue delivering meaningful connectivity to Nigerians.”
He stressed that the government’s objective is to ensure that any consolidation protects consumers and sustains long-term sector health.
- “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.
What you should know
Nairametrics earlier reported that MTN Group reached an agreement to acquire IHS Towers, one of the world’s largest independent owners and operators of shared telecom infrastructure, in an all-cash transaction that values the company at an enterprise value of approximately $6.2 billion.
The deal follows weeks of negotiations between both parties, which had been publicly reported earlier this month.
Under the terms of the merger agreement, IHS shareholders will receive $8.50 per ordinary share in cash, representing a 36% premium to its 52-week volume-weighted average price, and a modest 3% premium to its unaffected closing price of $8.23 on February 4, 2026.
