Federal Government has said it will conduct a comprehensive review of the proposed $6.2bn acquisition of IHS Holding Limited by MTN Group, citing the strategic importance of telecommunications infrastructure to Nigeria’s economy and national security.
The move follows an earlier announcement that MTN Group had agreed to acquire IHS Holding Limited in an all-cash transaction valued at $6.2bn, a deal that would see the tower company delisted and become a wholly owned subsidiary of the mobile network operator.
In a statement issued on Tuesday, Bosun Tijani, minister of Communications, Innovation and Digital Economy, said the government was closely monitoring developments.
“The Federal Ministry of Communications, Innovation and Digital Economy notes recent developments in the Nigerian telecommunications sector regarding the acquisition of IHS Towers by MTN Group,” the statement signed by the minister partly read.
“The Federal Ministry of Communications, Innovation and Digital Economy notes recent developments in the Nigerian telecommunications sector regarding the acquisition of IHS Towers by MTN Group,” the statement signed by the minister partly read.
The proposed transaction would consolidate ownership of critical passive infrastructure under the continent’s largest mobile operator by subscribers.
Tijani acknowledged recent improvements in the industry’s financial health, noting that “recent financial results announced by key operators indicate a return to improved profitability, increased investment in telecoms infrastructure and operational stability across the sector.”
“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 added.
However, he stressed that the government would not treat the transaction as routine, given the sensitivity of telecoms 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,” the minister stated.
The minister made the government’s position clear. “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.”
He added that the administration remained committed to maintaining “a stable, transparent, and forward-looking policy environment that keeps Nigeria’s telecommunications industry on a strong and sustainable path, in alignment with our broader vision of building a robust digital economy.”
The review is expected to involve relevant regulators, including the Nigerian Communications Commission and competition authorities, as part of standard merger control processes.
If approved, the deal would mark one of the largest telecom infrastructure transactions in Africa in recent years, signalling a shift in strategy by MTN from asset-light tower outsourcing to direct infrastructure ownership
