FG to review MTN’s $6.2bn IHS acquisition over security, market concerns

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 telecom infrastructure to Nigeria’s economy and national security.

Minister of Communications, Innovation and Digital Economy, Bosun Tijani, disclosed this in a statement on Tuesday, noting that the transaction would be carefully assessed in collaboration with relevant regulatory authorities.

The proposed deal, structured as an all-cash transaction, would see MTN take full ownership of IHS Holding Limited and delist the company from public markets, making it a wholly owned subsidiary. MTN already holds a significant minority stake in IHS, one of Africa’s largest independent telecom tower operators with tens of thousands of sites across major markets, including Nigeria.

Also read: MTN to acquire IHS Towers in $6.2 billion all-cash deal

Government cites national security, sector stability concerns

Tijani said the government would not treat the acquisition as a routine corporate transaction due to the critical role telecom infrastructure plays in Nigeria’s digital economy and security framework.

“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 of this development in collaboration with relevant regulatory authorities,” he said.

He explained that Nigeria’s telecom network supports key sectors including banking, fintech, e-commerce, and public services, making ownership and control of tower infrastructure a matter of national importance.

The minister added that reforms introduced under the current administration have helped stabilize the telecom sector, improve investor confidence, and strengthen overall industry performance.

Review aims to protect consumers, ensure long-term sector sustainability

According to Tijani, the government’s primary objective is to ensure that any consolidation in the telecom sector protects consumers, safeguards investments, and preserves long-term industry sustainability.

“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 said.

He noted that recent financial results from telecom operators show improved profitability and increased infrastructure investment, reflecting the sector’s recovery and resilience.

The proposed acquisition follows weeks of negotiations between MTN and IHS and would value the tower company at approximately $6.2 billion. Under the terms of the deal, IHS shareholders are expected to receive $8.50 per share in cash.

If approved, the transaction would mark one of the largest telecom infrastructure acquisitions in Africa, potentially reshaping ownership of critical digital infrastructure and strengthening MTN’s control over its network backbone across key markets, including Nigeria.