FG to scrutinise $6.2 billion MTN-IHS deal over sector dangers -Minister

The Federal Authorities has introduced plans to topic the proposed $6.2 billion acquisition of IHS Holding Restricted by MTN Group to a complete regulatory evaluate, citing the vital position of telecoms infrastructure in Nigeria’s financial system and nationwide safety structure.

This was in line with a press assertion by the Minister of Communications, Innovation and Digital Economic system, Bosun Tijani, on Tuesday.

The transaction, structured as an all-cash deal, would see MTN Group take full possession of IHS and delist the tower firm, changing it into a completely owned subsidiary.

MTN already holds a major minority stake in IHS, certainly one of Africa’s largest impartial tower operators with tens of hundreds of web sites throughout main markets, together with Nigeria.

What the assertion says
Within the assertion, Tijani mentioned the federal government was intently watching developments across the transaction.

“The Federal Ministry of Communications, Innovation & Digital Economic system notes latest developments within the Nigerian telecommunications sector concerning the acquisition of IHS Towers by MTN Group,” the minister said.
He famous that previously two years, beneath the administration of Bola Tinubu, reforms have been launched to stabilise and reposition the telecoms sector as a key pillar of Nigeria’s digital financial system.

“By means of coverage readability, regulatory assist, and sustained engagement with trade stakeholders, authorities has prioritised long-term sustainability, investor confidence, and improved sector efficiency,” Tijani mentioned.
Why the deal faces nearer scrutiny
The minister made it clear that the proposed acquisition wouldn’t be handled as a routine company transaction because of the sensitivity of telecoms infrastructure belongings.

“Given the strategic significance of telecommunications infrastructure to nationwide safety, financial progress, monetary providers, innovation, and social inclusion, and to make sure strategic actions by non-public sector operators are in step with the market growth agenda beneath the Renewed Hope coverage instructions of the President, the Ministry will undertake an intensive evaluation of this growth in collaboration with the related regulatory authorities to evaluate its impression on the sector,” he said.
Nigeria’s telecoms community underpins banking programs, fintech platforms, e-commerce, public service supply and rising digital applied sciences. Management of tower belongings due to this fact, carries implications that stretch past industrial returns.

Tijani acknowledged that the sector has lately proven indicators of restoration, citing improved monetary efficiency amongst operators.

“Current monetary outcomes introduced by key operators point out a return to improved profitability, elevated funding in telecoms infrastructure and operational stability throughout the sector,” he mentioned.
“This progress displays the resilience of the trade and the impression of reforms geared toward guaranteeing its viability and capability to proceed delivering significant connectivity to Nigerians.”
He harassed that the federal government’s goal is to make sure that any consolidation protects customers and sustains long-term sector well being.

“Our goal is evident: to make sure that any market consolidation or structural adjustments shield customers, safeguard investments, and protect the long-term sustainability of the sector,” the minister mentioned.
What it is best to know
Nairametrics earlier reported that MTN Group reached an settlement to accumulate IHS Towers, one of many world’s largest impartial house owners and operators of shared telecom infrastructure, in an all-cash transaction that values the corporate at an enterprise worth of roughly $6.2 billion.

The deal follows weeks of negotiations between each events, which had been publicly reported earlier this month.

Underneath the phrases of the merger settlement, IHS shareholders will obtain $8.50 per strange share in money, representing a 36% premium to its 52-week volume-weighted common value, and a modest 3% premium to its unaffected closing value of $8.23 on February 4, 2026.