MTN’s $6.2bn IHS Deal Faces Federal Government Review Amid Telecom Monopoly Concerns

The Federal Government of Nigeria has announced plans to evaluate the proposed $6.2 billion acquisition of IHS Towers by MTN Group, citing the need to safeguard competition, investor confidence, and long-term sector stability.

The disclosure was made Tuesday night by the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, who said the government would conduct a comprehensive assessment in collaboration with relevant regulatory authorities.

According to the Minister, the review is aimed at determining the transaction’s impact on market sustainability and ensuring that any consolidation aligns with Nigeria’s broader digital economy agenda.

“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 statement read.

Why the Government Is Concerned

The telecom sector has only recently returned to stability following years of macroeconomic headwinds, foreign exchange volatility, and operational losses.

With profitability and capital investments now improving, the government is keen to prevent structural changes that could destabilise the industry’s recovery.

Telecommunications remains central to Nigeria’s national security, financial services ecosystem, and digital transformation strategy. Authorities say any major consolidation must protect consumers, preserve investor confidence, and maintain competitive market dynamics.

The Minister emphasised that the review aligns with the administration’s Renewed Hope policy framework and is not designed to obstruct the transaction.

“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.”

The $6.2bn Deal at the Centre

The proposed transaction first surfaced in early February when MTN disclosed its intention to acquire the remaining 75% stake in IHS Holdings.

On Tuesday, IHS Towers confirmed that its Board of Directors had unanimously approved the agreement and recommended the transaction to shareholders. If completed, the deal would give MTN full control of IHS.

The merger is expected to close by the end of 2026.

MTN and IHS share a long-standing commercial relationship. MTN is IHS’s largest customer across several African markets and a significant shareholder.

Over the past decade, MTN has divested thousands of passive network sites to IHS under sale-and-leaseback arrangements. According to the Nigerian Communications Commission’s 2024 Year-End Performance Report, IHS owns and manages 47% of Nigeria’s 39,880 telecom towers — the largest share in the country.

Competition and Monopoly Concerns

Industry stakeholders have raised concerns that full ownership of IHS by MTN could reshape the competitive landscape.

IHS provides tower infrastructure to multiple operators, including Airtel and smaller networks. Analysts warn that vertical integration of tower infrastructure under a dominant operator could create pricing pressures or access barriers for competitors.

There are also questions about how smaller operators reliant on shared infrastructure would be affected if MTN assumes complete control.

These are the issues regulators are expected to examine over the coming weeks.

The Bigger Picture

The proposed MTN–IHS merger represents one of the most significant structural shifts in Nigeria’s telecom industry in recent years.

For the government, the priority is ensuring that consolidation strengthens — rather than distorts — the market.

As Nigeria accelerates broadband expansion, 5G deployment, and digital services integration, tower infrastructure remains foundational. Any changes in its ownership structure carry implications not just for telecom operators, but for banks, fintechs, startups, and millions of digital consumers.

The coming regulatory review will determine whether the $6.2 billion deal enhances efficiency and investment — or risks concentrating too much power in a single player.