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 strategic importance of telecommunications infrastructure to Nigeria’s economy and national security.
The disclosure, now dominating Nigeria News Today, was contained in a press statement issued Tuesday by the Minister of Communications, Innovation and Digital Economy, Bosun Tijani.
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 key markets, including Nigeria.
What the Minister Said
In the statement, Tijani confirmed that the government is closely monitoring developments around the acquisition.
“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 President Bola Tinubu, reforms have been introduced to stabilise and reposition the telecoms sector as a critical 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 Heightened Scrutiny
The minister emphasised that the proposed acquisition would not be treated as a routine corporate transaction because of the sensitivity of telecom infrastructure assets.
“Given the strategic importance of telecommunications infrastructure to national security, economic growth, financial services, innovation, and social inclusion, the Ministry will undertake a thorough assessment in collaboration with relevant regulatory authorities to review its impact on the sector,” he stated.
Nigeria’s telecoms backbone supports banking systems, fintech platforms, e-commerce, public service delivery, and emerging digital technologies. Control of tower infrastructure therefore carries implications that extend far beyond commercial considerations.
Tijani acknowledged that the sector has recently shown signs of recovery, referencing 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.
He stressed that the government’s objective is to ensure that any consolidation protects consumers while sustaining long-term industry 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.”
Background to the $6.2bn Deal
MTN Group recently reached an agreement to acquire IHS Towers in an all-cash transaction valued at approximately $6.2 billion.
Under the merger terms, IHS shareholders would receive $8.50 per ordinary share in cash, representing a 36% premium to its 52-week volume-weighted average price and a 3% premium to its unaffected closing price of $8.23 on February 4, 2026.
As previously reported by The Business Bureau, the deal represents one of the largest telecom infrastructure consolidation moves in Africa and could reshape competitive dynamics in Nigeria’s digital economy.
Stay with The Business Bureau for continuing updates shaping Nigeria News Today.
