By Martin Ekpeke
The Federal Government has signaled a high-stakes regulatory showdown following the announcement of MTN Group’s $6.2 billion bid to take full control of IHS Towers.
In an official statement released on Tuesday, Minister of Communications, Innovation, and Digital Economy Dr. Bosun Tijani announced that the government will conduct a thorough assessment of the deal to safeguard the nation’s digital economy.
The move marks a potential turning point for Nigeria’s telecommunications landscape, as the government weighs the benefits of sector stability against the risks of market consolidation.
The proposed acquisition would see MTN, Nigeria’s largest mobile operator, buy back the very infrastructure it began selling off over a decade ago. While MTN argues that reintegrating these assets will improve cost predictability and network expansion, the Ministry is cautiously raising the alarm over the strategic weight of these passive infrastructure assets.
“Given the strategic importance of telecommunications infrastructure to national security, economic growth, and financial services, the Ministry will undertake a thorough assessment to review its impact on the sector,” the statement read.
The statement noted that the ministry is collaborating with the Nigerian Communications Commission and competition authorities to investigate three critical areas of concern regarding the deal.
First, the government is analyzing the potential impact on consumers to ensure the structural change does not result in higher costs for Nigerians or a decline in service quality. Second, there are significant worries regarding market competition because IHS Towers currently serves as a neutral host for MTN’s rivals, such as Airtel and Globacom.
The government fears that MTN’s full ownership could create an uneven playing field and allow the company to dictate terms to its competitors. Third, officials are assessing the systemic risk posed by the concentration of power over infrastructure that supports vital services like mobile money and emergency response.
Ultimately, the government views this consolidation as a potential threat to Nigeria’s national digital sovereignty and overall stability.
Meanwhile, Dr. Tijani’s statement was careful to balance the administration’s pro-investment stance with its regulatory duties, noting that while recent reforms under President Bola Ahmed Tinubu have returned the sector to improved profitability, the government cannot treat a deal of this magnitude as a routine corporate transaction.
“Our objective is clear: to ensure that any market consolidation or structural changes protect consumers, safeguard investments, and preserve the long-term sustainability of the sector,” he said.
Industry analysts suggest the review could lead to behavioral remedies and stringent conditions forced upon MTN to ensure they continue to provide fair and transparent access to the towers for other network providers.