In the world of African tech, few things are as cyclical as the relationship between a mobile operator and its towers. For years, the mantra was “asset-light”: sell the steel, lease the signal, and let someone else worry about the diesel generators.
But this week, MTN Group decided it wants its “house” back. The South African giant announced a definitive agreement to acquire IHS Towers in an all-cash deal valuing the company at $6.2 billion (approximately $8.50 per share). It’s the corporate equivalent of selling your car to save on parking, realizing the Uber surge pricing is killing you, and then deciding to buy the entire taxi fleet just to get to work on time.
However, the Nigerian government has stepped in to ask for the receipts.
The Deal:
The numbers behind the deal are eye-catching. MTN is offering a 239% premium over IHS’s share price from March 2024, when the tower company first started its “strategic review”.
For Sam Darwish, Chairman and CEO of IHS Towers, this is a victory lap. After years of battling a brutal Naira devaluation and aggressive activist investors like Blackwells Capital, Darwish is “crystallizing value” for shareholders.
The fine print:
- Price: $8.50 per ordinary share.
- Enterprise Value: $6.2 billion.
- Funding: A mix of $1.1 billion cash from MTN, $1.1 billion from IHS’s own balance sheet, and a rollover of MTN’s existing 24% stake.
- Prerequisite: IHS has to finish selling off its Latin American assets to Macquarie Asset Management first. It turns out you have to clean out the garage before you sell the house.
Enter the Nigerian Regulators
Just as the champagne was being chilled in Johannesburg and London, Dr. ‘Bosun Tijani, Nigeria’s Minister of Communications, Innovation and Digital Economy, released a statement that felt like a cold shower.
Citing “national security” and “economic growth,” the Ministry announced it would undertake a “thorough assessment” of the acquisition. In the world of Nigerian bureaucracy, a “thorough assessment” is often the polite precursor to a very long, very expensive conversation.
The government’s concern is simple: monopoly. IHS isn’t just MTN’s landlord; it hosts almost everyone else, including Airtel Nigeria. If MTN owns the towers, they effectively own the “ground” their competitors stand on.
“Our objective is clear: to ensure that any market consolidation or structural changes protect consumers and preserve the long-term sustainability of the sector.” — Dr. ‘Bosun Tijani
Adding to the drama is a February 2025 court ruling that confirmed the Federal Competition and Consumer Protection Commission (FCCPC) has concurrent jurisdiction with the Nigerian Communications Commission (NCC). MTN now has to please two different regulators, each with its own idea of what “fair play” looks like.
To the casual observer, IHS is a global giant. It has 40,000 towers across seven countries. However, looking at the numbers reveals a “tail wagging the dog” scenario that would make any actuary sweat.
- The Revenue Trap: Nigeria accounts for roughly 60% to 70% of IHS’s total revenue.
- The Tower Core: Nearly half of its global tower count sits on Nigerian soil.
- The MTN Factor: MTN Nigeria isn’t just a client; it is the anchor tenant that keeps the lights on.
When Dr. ‘Bosun Tijani, Nigeria’s Minister of Communications, says the government is “assessing” the deal, he isn’t just checking a box. He knows that if Nigeria says “No,” the $6.2 billion deal doesn’t just lose its biggest piece — it loses its entire reason for existing.
Why MTN Wants the Keys Back
You might wonder why MTN is spending billions to buy back infrastructure it spent a decade offloading. The answer is control.
In Nigeria, operating a tower is less about “telecommunications” and more about “power management.” Between the skyrocketing cost of diesel and the volatility of the Naira, MTN’s lease payments to IHS had become an unpredictable nightmare. By bringing the towers back in-house, MTN can:
- Internalize the margins it was previously paying to IHS.
- Hedge against FX volatility by managing its own infrastructure costs.
- Streamline 5G rollout without having to negotiate lease amendments for every new antenna.
The “Renewed Hope” vs. The Bottom Line
There is a delicious irony in the timing. While the Nigerian government touts its “Renewed Hope” policy and claims the sector is returning to “improved profitability,” the reality is that the telecom industry has been gasping for air under the weight of inflation.
MTN is trying to buy stability; the government is trying to maintain oversight. Both are framing their actions as being for the “benefit of Nigerians,” though one suspects the “benefit” mostly involves making sure the Netflix stream doesn’t buffer and the dividends keep flowing.
What happens next? The deal is slated to close in late 2026, but only if MTN can convince the FCCPC that owning 40,000 towers won’t make them the “Bully of the Boulevard.”