MTN’s $2.2bn IHS deal gets regulatory nod, 30% stake reserved for Nigerians
MTN Group’s proposed $2.2 billion acquisition of IHS Towers has received regulatory approval in Nigeria, clearing a major hurdle for the telecoms giant’s plan to take control of the tower infrastructure company.
MTN disclosed the development in its half-year 2026 results, saying the transaction had received approvals from relevant Nigerian regulators, including the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC).
However, the approval comes with a major condition aimed at increasing Nigerian participation in the ownership of the critical telecoms infrastructure.
Under the condition, MTN will be required to sell a 30 per cent stake in IHS Nigeria to Nigerian investors at a fair market price and on an arm’s-length commercial basis.
The requirement is significant because IHS provides tower infrastructure used by several telecommunications operators, including MTN and its competitors.
The acquisition had therefore raised questions about competition in Nigeria’s telecoms industry, particularly the implications of one of the country’s biggest operators gaining greater control over infrastructure that other operators rely on.
The 30 per cent local ownership requirement is expected to address some of those concerns by ensuring that Nigerian investors retain a significant stake in the infrastructure business.
MTN announced in February 2026 that it had agreed to acquire the approximately 75 per cent of IHS Holdings it did not already own. The transaction is focused on IHS’ African operations and is part of MTN’s strategy to strengthen its digital infrastructure business.
MTN said the acquisition would give it greater control over critical infrastructure, generate operational efficiencies and support its Ambition 2030 strategy, which is built around connectivity, fintech and digital infrastructure.
The company has previously described the IHS transaction as a strategic move to regain greater ownership of infrastructure while maintaining an open-access model for other customers.
MTN has maintained a long-standing relationship with IHS. Its interest in the tower company dates back several years, and the group has previously identified IHS as an important infrastructure investment.
The latest transaction will effectively move MTN from being a significant shareholder in IHS to taking control of the business, subject to the completion of the remaining conditions.
The Nigerian regulatory requirement also comes against the background of MTN’s wider localisation strategy across its African operations, with the group having previously pursued measures to increase local ownership in markets such as Ghana and Uganda.
For Nigeria’s telecoms industry, the completion of the deal will be closely watched because IHS remains a major provider of tower infrastructure. MTN Nigeria also has existing infrastructure-sharing and lease arrangements with IHS, which were renegotiated in 2024 and extended to December 2032.
The acquisition is expected to further strengthen MTN’s position in digital infrastructure as demand for connectivity, data centres and other technology infrastructure continues to grow across Africa.
The 30 per cent sell-down, however, means MTN’s control of IHS Nigeria will not translate into complete ownership, leaving room for Nigerian investors to participate in the business.
The transaction is therefore expected to remain a significant development for both Nigeria’s telecommunications sector and its capital market as MTN moves towards completing the acquisition.
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