Nigeria approves MTN’s $2.2bn IHS Towers deal with conditions

Nigeria has granted conditional approval for MTN Group’s proposed $2.2 billion acquisition of the Nigerian business of IHS Towers. The Federal Competition and Consumer Protection Commission and the Nigerian Communications Commission (NCC) have imposed several regulatory safeguards to prevent MTN from gaining excessive control over the country’s telecommunications infrastructure.

A key condition requires MTN to gradually divest up to 30% of its interest in the Nigerian arm of IHS Towers at prevailing market prices. This measure is intended to protect competitors, such as Airtel and T2 Mobile, by ensuring they maintain fair access to tower services. Additionally, the NCC has stipulated that the transaction must not grant MTN exclusive rights over IHS infrastructure and that existing commercial contracts must remain unchanged.

To ensure continued development, the NCC requires MTN to submit an investment plan with measurable milestones. While the NCC granted an Approval-in-Principle in mid-July, final clearance is contingent upon MTN’s compliance with these governance, market access, and investment conditions.