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MTN Group’s proposed $2.2 billion acquisition of IHS Towers has secured regulatory approval in Nigeria, moving the telecom giant closer to taking greater control of the infrastructure underpinning its networks, but authorities have attached a condition requiring local Nigerian ownership.
The transaction was approved by the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC), according to MTN’s half-year 2026 results released on August 24.
The approvals represent a major step toward completion of the deal, which would significantly expand MTN’s ownership of the telecommunications infrastructure used across its markets.
30% IHS Nigeria Stake Must Go to Local Investors
As part of the approval, MTN will be required to sell 30% of IHS Nigeria to Nigerian investors.
The stake must be offered at a fair market value and on an arm’s-length commercial basis, meaning the transaction must be conducted on terms comparable to those between independent parties.
The condition is particularly significant because IHS Nigeria operates a large portfolio of telecom towers used by multiple network operators.
MTN’s increased ownership could therefore give one of Nigeria’s largest mobile operators greater influence over infrastructure also relied upon by competitors, including Airtel Nigeria and T2mobile.
The mandated local sell-down provides regulators with an additional safeguard while ensuring that part of the country’s critical telecommunications infrastructure remains in domestic hands.
Competition Concerns Prompted Regulatory Review
Concerns about the potential impact of the transaction on competition emerged when MTN announced the proposed acquisition in February 2026.
The Federal Government said it would scrutinise the deal to assess its implications for Nigeria’s telecommunications industry.
Communications and Digital Economy Minister Bosun Tijani had said the review would consider issues including the long-term sustainability of the sector, investor confidence and overall industry performance.
At the centre of the concern was whether MTN’s expanded control of tower infrastructure could potentially place competing operators at a disadvantage.
The regulatory approvals indicate that authorities have determined the transaction can proceed, subject to safeguards including the 30% local ownership requirement.
MTN Seeks Remaining IHS Stake
The acquisition builds on an existing relationship between MTN and IHS Towers.
MTN has historically been both a major customer and shareholder in IHS, while the tower company operates thousands of telecommunications sites across Africa and other emerging markets.
Under the proposed transaction, MTN will acquire the remaining 75% stake in IHS Holdings, effectively taking the company private.
IHS shareholders have already approved the transaction, bringing the acquisition closer to completion.
For MTN, greater ownership of tower infrastructure fits into its broader Ambition 2030 strategy, which seeks to move the company beyond traditional telecommunications services and deepen its participation in infrastructure, fintech and digital services.
Infrastructure Ownership Becomes More Strategic
The IHS transaction comes as telecom operators increasingly view physical infrastructure as a strategic asset rather than simply an operating expense.
Owning a larger portion of the towers supporting its networks could give MTN greater control over infrastructure planning, network deployment and potentially long-term operating costs.
It could also provide opportunities to generate additional value from infrastructure assets.
However, the company’s position as both a network operator and infrastructure owner makes regulatory oversight particularly important in markets where competing operators depend on the same tower networks.
MTN Also Unveils $375.5m Share Buyback
MTN’s H1 2026 results also revealed plans for a significant share repurchase programme.
The group intends to spend $375.5 million to acquire up to 31 billion of its own shares, with the repurchased shares subsequently cancelled.
A buyback reduces the number of shares in circulation and can increase earnings per share if profits remain unchanged or grow.
The programme therefore represents another mechanism through which MTN is seeking to enhance shareholder value while continuing to invest in its operations.
Two-Pronged Strategy
The IHS acquisition and share buyback point to two different aspects of MTN’s capital strategy.
On one side, the group is committing significant capital to gain greater control over infrastructure that supports its core connectivity business.
On the other, it is returning capital to shareholders by reducing its outstanding share count.
The combination reflects MTN’s effort to strengthen the underlying infrastructure of its operations while improving the potential value of the equity that remains in investors’ hands.
The Bigger Picture
The Nigerian regulatory approval removes a major obstacle to MTN’s proposed acquisition of IHS Towers, but the 30% local ownership requirement will shape how the transaction ultimately plays out in the country’s telecom infrastructure market.
For regulators, the challenge will be ensuring that local ownership and competition safeguards work in practice without undermining the commercial rationale behind the deal.
For MTN, the acquisition offers an opportunity to deepen its control over critical infrastructure and align IHS more closely with its long-term strategy.
The next major test will therefore be whether MTN can complete the transaction while meeting the local ownership condition and demonstrating that greater infrastructure control can coexist with a competitive Nigerian telecommunications market.
