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The Federal Government of Nigeria has signaled a rigorous regulatory intervention into the proposed $6.2 billion acquisition of IHS Holding Limited by MTN Group, citing concerns over national security and the potential for systemic risk within the country’s digital economy.
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, issued a formal statement on Tuesday confirming that the multi-billion-dollar deal would be subjected to a “comprehensive review.” The transaction, structured as an all-cash merger, aims to see MTN Group Africa’s largest mobile operator take full ownership of IHS Towers, subsequently delisting the tower giant and integrating it as a wholly-owned subsidiary.
The government’s primary concern centers on the sheer scale of the consolidation. IHS is one of the world’s largest independent owners of telecommunications infrastructure, and its towers form the backbone of Nigeria’s connectivity. By bringing these assets under the direct control of a single service provider, the government fears a shift in market dynamics that could stifle competition or create a single point of failure for the nation’s critical infrastructure.
“Given the strategic importance of telecommunications infrastructure to national security, economic growth, and social inclusion, control of tower assets carries implications that extend far beyond commercial returns,” Dr. Tijani stated. He emphasized that the telecom sector underpins Nigeria’s banking systems, fintech platforms, and e-commerce, making its stability a matter of sovereign interest.
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The proposed deal comes at a delicate time. Under President Bola Tinubu’s administration, the sector has seen a wave of reforms aimed at stabilizing profitability and encouraging infrastructure investment. The Minister noted that while recent financial results show a return to stability for major operators, the government must ensure that any structural changes align with the “Renewed Hope” policy agenda.
Industry analysts note that the $6.2 billion valuation offers IHS shareholders a 36% premium on recent trading prices, reflecting MTN’s eagerness to consolidate its supply chain. However, the Federal Government’s objective remains firm: to ensure that market consolidation protects consumers and preserves long-term sector sustainability.
As the regulatory review begins, the Ministry and the Nigerian Communications Commission (NCC) are expected to scrutinize the deal’s impact on tower-sharing agreements and the pricing of infrastructure services for other mobile operators. For now, the “all-cash” path to a monopoly on tower assets remains under the government’s microscope.
