MTN Group Negotiates Full Acquisition of IHS Towers
MTN Group, Africa’s largest telecommunications provider, is in advanced discussions to acquire the remaining 75 percent stake in IHS Towers, a move that would consolidate its control over critical passive infrastructure across its operational footprint. The potential transaction, disclosed on February 5, 2026, follows years of complex shareholder dynamics and serves as a strategic pivot toward infrastructure ownership as MTN seeks to optimize its balance sheet and enhance network reliability in its largest markets, particularly Nigeria. If successful, the deal would result in the full integration of IHS Towers’ extensive portfolio of over 40,000 towers into MTN’s broader corporate structure.
The negotiations mark a significant shift in the “towerco” model that has dominated the African telecommunications landscape for the past decade. Historically, mobile network operators (MNOs) like MTN and Airtel moved toward an “asset-light” strategy, divesting their physical tower assets to independent specialists like IHS to reduce capital expenditure and focus on core service delivery. However, the current economic climate characterized by high energy costs and currency volatility has increased the operational burden of leasing towers. By bringing these assets back in-house or under direct control, MTN aims to mitigate the rising costs of site maintenance and power, which are often indexed to the U.S. dollar.
For the Nigerian economy, the implications of this acquisition are substantial given that Nigeria represents IHS Towers’ largest market, accounting for approximately 16,000 of its sites. Telecommunications is a primary driver of Nigeria’s non-oil GDP, contributing over 14 percent to the national economy as of late 2025. The stability of this sector is contingent on the efficiency of the underlying infrastructure. A consolidation of ownership could lead to more streamlined investments in 5G expansion and rural connectivity, as MTN would no longer be subject to the external commercial margins of a third-party provider. However, industry analysts note that such a move may raise concerns regarding market competition and the “neutral host” model, which currently allows multiple operators to share the same towers to reduce costs.
The relationship between MTN and IHS has been marked by a period of corporate friction regarding governance and voting rights. In 2023 and 2024, MTN—which holds a 26 percent stake but limited voting power expressed dissatisfaction with IHS management over transparency and shareholder representation. This friction culminated in legal challenges and public disputes during annual general meetings. The current move to acquire the remaining stake suggests a resolution that prioritizes long-term operational synergy over persistent boardroom disagreements. From a fiscal perspective, the acquisition will require a multi-billion dollar financing arrangement, which market observers expect will be a combination of debt restructuring and equity, given MTN’s ongoing efforts to repatriate funds from its various subsidiaries.
Contextually, the telecommunications sector in Nigeria is currently grappling with the high cost of energy, as tower sites traditionally rely on diesel generators. The move toward renewable energy integration, such as solar-hybrid systems, requires significant upfront capital. By taking full ownership, MTN can directly implement its “Project Zero” sustainability goals across the tower network, potentially reducing its long-term carbon footprint and operational vulnerability to fluctuations in global fuel prices. This transition is essential for the sector’s sustainability in a high-inflation environment where consumer purchasing power remains under pressure.
The potential deal also aligns with the Federal Government’s goal of achieving 70 percent broadband penetration by 2027. Under the leadership of the Ministry of Communications, Innovation, and Digital Economy, Nigeria has been pushing for increased investment in the “last mile” of digital infrastructure. A unified MTN-IHS entity could theoretically accelerate the deployment of fiber-to-the-tower and other backhaul improvements necessary for high-speed internet in secondary cities and rural areas. This would provide the foundational infrastructure required for the expansion of Nigeria’s burgeoning fintech and digital services sectors, which are estimated to contribute significantly to the nation’s $1 trillion GDP target.
Looking forward, the transaction will be subject to rigorous regulatory scrutiny from the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC). Regulators will likely focus on ensuring that the acquisition does not lead to a monopolistic advantage that could disadvantage smaller operators or lead to higher prices for consumers. As the formal bid process advances through the first half of 2026, the global financial community will monitor the impact on IHS Towers’ listing on the New York Stock Exchange (NYSE) and the broader implications for infrastructure investment across the African continent.
