IHS Towers currently operates a significant portfolio of telecommunication towers in Nigeria, owning around 16,000 towers across the country.
Out of these, approximately 14,600 are leased by MTN, a major telecommunications provider in Nigeria. This makes IHS Towers the primary infrastructure provider for MTN, holding 80% of the telecom giant’s tower assets.
Renewal of Lease Agreements with MTN Nigeria
Recently, IHS Nigeria, a subsidiary of IHS Towers, made a significant announcement concerning its ongoing relationship with MTN Nigeria.
The company revealed that it has successfully signed a new agreement to renew and extend all existing master lease agreements for its towers with MTN until December 2032.
This extended partnership will encompass around 13,500 telecommunication towers, ensuring a continued and stable collaboration between the two companies.
According to IHS Towers, the renewed agreements introduce updated financial terms designed to offer a more sustainable balance between local and foreign currencies.
Additionally, a new component related to diesel costs has been included, reflecting the evolving operational needs of both parties.
Strategic Context and Competitive Landscape
This new agreement comes nearly a year after MTN Nigeria announced its intention to lease 2,500 network sites from American Tower Corporation (ATC) starting in 2025.
This decision followed the expiration of an existing contract with IHS Nigeria and highlighted MTN’s strategic move to renegotiate and diversify its tower leasing agreements.
The goal is to improve operational efficiency and ensure that the company receives the best possible performance from its infrastructure providers.
In response to these developments, IHS Holding proposed more competitive commercial terms to MTN Nigeria in December 2023.
As a result, IHS recently announced the successful renewal of 1,430 lease agreements, including new colocation deals, further strengthening its position in the market.
Implications for IHS Towers and the Nigerian Telecom Market
The renewal of these contracts is expected to bolster IHS Towers’ presence in the Nigerian telecom market, where the company already plays a dominant role.
With its current ownership of 16,000 towers in the country, including the 14,600 leased by MTN, IHS Towers remains a key player in the telecom infrastructure landscape.
In addition to its renewed partnership with MTN, IHS Towers has also secured an extension of its contract with Airtel Nigeria for approximately 6,000 towers, extending their collaboration until 2031.
This further cements IHS’s position as a leading telecom infrastructure provider in Nigeria, ensuring the company’s continued growth and influence in the region.