The Federal Government of Nigeria has announced plans to closely scrutinise MTN Group’s proposed $6.2 billion acquisition of IHS Holding Limited, highlighting the strategic importance of telecommunications infrastructure to the nation’s economy and security. According to Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, the review will examine potential sector risks and ensure the deal aligns with Nigeria’s digital economy goals.
The acquisition, an all-cash deal, would give MTN Group full ownership of IHS Towers and lead to its delisting from public markets, converting it into a wholly owned subsidiary. MTN already holds a significant minority stake in IHS, one of Africa’s largest independent tower operators with tens of thousands of sites across Nigeria and other key markets. The transaction has drawn attention for its scale and potential implications for the country’s telecoms infrastructure.
Minister Tijani emphasised that the deal would not be treated as a routine corporate transaction. “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 the relevant regulatory authorities,” he said. The review aims to ensure private sector actions remain consistent with the government’s Renewed Hope policy agenda.
The minister also highlighted the telecoms sector’s resilience and recent recovery, noting improved profitability and increased investment by operators. “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,” Tijani added. The government seeks to balance investor confidence with the protection of Nigeria’s critical digital infrastructure.
Under the proposed deal, IHS shareholders would receive $8.50 per ordinary share in cash, representing a 36% premium to its 52-week average price. The acquisition follows weeks of negotiations and signals MTN’s ambition to consolidate its control over one of the continent’s most critical telecoms assets. Analysts say the review will be closely watched, as it may set precedents for future infrastructure deals in Nigeria.
source: nairametrics