MTN Nigeria Communications Plc has announced the successful renegotiation of its tower lease agreements with IHS and ATC Nigeria. The deal, which was part of the company’s strategy to recover its capital position, will see significant cost savings and improved operational efficiency.
According to a statement released by the company and signed by Uto Ukpanah, Company Secretary, the renegotiated terms involve a shift from US dollar-indexed leases to primarily naira-based ones, with a cap on the naira CPI escalator component. Additionally, the agreements remove technology-based pricing and incorporate an energy cost component indexed to the cost of diesel power.
The lease terms have also been extended to December 31, 2032, providing MTN Nigeria with greater long-term stability.
Furthermore, the company has reached an agreement with ATC and IHS on the allocation of approximately 2,500 sites previously awarded to ATC from the IHS portfolio. The revised allocation will see ATC manage up to 2,100 sites, while IHS will manage up to 1,400 sites.
MTN Nigeria CEO, Karl Toriola, expressed satisfaction with the renegotiated agreements, highlighting the expected cost efficiencies and positive impact on the company’s operating margins and capital position.
The successful renegotiation of these agreements is a significant step forward for MTN Nigeria as it continues to optimize its operations and strengthen its financial position in the Nigerian market.