The Federal Government of Nigeria has launched a comprehensive regulatory review of the proposed $6.2 billion acquisition of IHS Holding Limited by MTN Group. Citing the critical role of telecommunications infrastructure in national security and economic stability, the government intends to ensure the deal aligns with the country’s long-term digital agenda.
The transaction, unveiled as an all-cash deal, involves IHS Towers—one of Africa’s largest independent infrastructure providers. If finalized, the company would be delisted and integrated as a wholly-owned subsidiary of MTN.
Government Oversight and Strategic Assessment
In an official statement released on Tuesday, February 17, 2026, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, emphasized that the administration is closely scrutinizing the merger.
Dr. Tijani noted that under President Bola Tinubu, the government has spent two years stabilizing the telecommunications sector through policy clarity and regulatory support. The goal has been to foster investor confidence while building a robust digital economy.
“The Federal Ministry… will undertake a thorough assessment of this development in collaboration with relevant regulatory authorities to review its impact on the sector,” the Minister stated.
The Shift from “Asset-Light” to Direct Ownership
For over a decade, the global telecommunications trend has favored an “asset-light” model. In this setup, mobile operators sell their physical towers to independent companies like IHS and lease them back. This allows operators to focus on network services and spectrum rather than tower maintenance.
This $6.2 billion deal represents a major strategic pivot for MTN. By bringing tens of thousands of towers back under its direct control, the continent’s largest mobile operator would consolidate the ownership of “passive infrastructure”—the physical masts and power systems—that its competitors also rely on.
Current Market Context:
- MTN’s Position: Already holds a significant minority stake in IHS.
- IHS’s Scale: Operates tens of thousands of towers across Africa, with its largest footprint in Nigeria.
- National Impact: Telecom infrastructure currently underpins Nigeria’s banking, fintech, and public services.
Economic Recovery and Sector Health
The proposed acquisition arrives during a period of renewed optimism for the Nigerian telecom industry. Despite previous currency fluctuations, recent financial reports from major operators show a return to profitability and improved operational stability.
Minister Tijani acknowledged this progress but stressed that telecom assets are too sensitive to treat this merger as a routine commercial transaction. Because these towers serve as the backbone for financial services and social inclusion, any change in ownership requires high-level clearance.
Impact on Competition and Infrastructure Sharing
A primary concern for regulators is the competitive landscape. Currently, smaller mobile operators and Internet Service Providers (ISPs) rely on IHS as a neutral third party to host their equipment.
If MTN becomes the sole owner of these towers, three major questions arise:
- Lease Pricing: Will competitor costs to use these towers remain fair and transparent?
- Infrastructure Access: Will smaller players face barriers when trying to expand into remote areas?
- Vertical Monopoly: Does this consolidation stifle innovation by centralizing control of the “pipes”?
Next Steps: A Multi-Agency Regulatory Review
The review will involve a collaborative approach between several government bodies:
- Nigerian Communications Commission (NCC): To assess technical compliance and service quality.
- Competition Authorities: To ensure the deal does not create a monopoly that hurts consumers.
- National Security Agencies: To evaluate the implications of a single private entity controlling the nation’s communications backbone.
“Our objective is clear,” Tijani added, “to ensure that any market consolidation or structural changes protect consumers and preserve the long-term sustainability of the sector.”
Conclusion: A Milestone for Africa’s Digital Economy
The MTN-IHS deal is one of the largest infrastructure transactions in African history. It signals a new era where owning the physical “backbone” is once again a primary strategic advantage. The results of this review will likely set a precedent for digital infrastructure ownership across the continent for years to come.
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