MTN’s $2.2bn IHS deal clears regulatory hurdle, 30% stake reserved for Nigerian investors

MTN Group’s proposed $2.2 billion acquisition of IHS Towers has cleared a major regulatory hurdle in Nigeria, bringing the telecom giant closer to taking control of the tower infrastructure company.

MTN disclosed the development in its half-year 2026 results, saying the transaction had received approval from key Nigerian regulators, including the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC).

However, the approval comes with a significant condition: MTN will be required to sell a 30% stake in IHS Nigeria to Nigerian investors at a fair market price and on an arm’s-length commercial basis.

The condition is particularly important because IHS provides tower infrastructure used by several telecom operators in Nigeria.

With MTN seeking to acquire the remaining stake in IHS, concerns had emerged over the possibility of the country’s largest mobile operator gaining greater control over infrastructure that competitors also depend on.

The 30% local ownership requirement appears aimed at addressing those competition concerns while ensuring Nigerians retain a meaningful stake in a critical part of the country’s digital infrastructure.

MTN announced the proposed acquisition in February 2026, seeking to acquire the remaining approximately 75% stake in IHS Holdings that it did not already own.

The transaction is part of MTN’s broader strategy to strengthen its digital infrastructure business and gain greater control over assets supporting connectivity across its markets.

IHS has thousands of telecom towers across Africa and other emerging markets, making it an important infrastructure provider to mobile network operators.

For MTN, taking greater ownership of the infrastructure behind its networks could provide operational benefits and strengthen its position as demand for connectivity and digital services continues to increase.

But the transaction has also attracted regulatory attention because of the role IHS plays in Nigeria’s telecoms ecosystem.

The Nigerian government had previously indicated that it would scrutinise the deal to assess its potential impact on competition, investment and the long-term sustainability of the telecoms sector.

The approval, subject to the 30% Nigerian ownership condition, indicates that regulators have allowed the transaction to proceed while putting safeguards around local participation and competition.

The deal also comes as MTN expands its focus beyond traditional telecommunications into digital infrastructure, data centres and artificial intelligence infrastructure.

The company has identified digital infrastructure as an increasingly important part of its long-term growth strategy as data consumption and demand for cloud and AI services rise across Africa.

For Nigeria’s telecoms industry, the completion of the IHS acquisition will be closely watched because of the company’s importance to network infrastructure.

The next major step will be the implementation of the 30% sell-down and the emergence of Nigerian investors who will take up the stake.

The transaction could ultimately reshape ownership of one of the country’s most important telecom infrastructure businesses while giving Nigerian investors a direct interest in the tower sector.