MTN deal gets Nigerian regulatory approval

MTN Group’s $2.2 billion purchase of IHS Towers has been cleared by Nigerian authorities. The approvals include the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission. The clearance marks progress in MTN’s strategy to dominate network infrastructure for its 300 million-plus subscriber base.

The Nigerian government had earlier expressed concerns over the potential impact of the acquisition on the Nigerian telecoms industry, particularly with regards to competition and the long-term sustainability of the industry.

Despite the regulatory approvals, MTN’s acquisition of IHS Towers is not expected to affect competition. It also should not impact the industry at large. A clause requires MTN to sell a 30% stake in the Nigerian branch to local investors at a fair market price.

The move is expected to protect local competitors. It also avoids a single foreign giant having total control over critical infrastructure. Local businesses and investors can hold equity in essential national infrastructure such as telecom towers.

MTN has also announced plans to reduce the total number of its shares available on the market through a share buyback programme.

The programme is part of the shareholder remuneration framework announced with the launch of Ambition 2030. It will see MTN spend $375.5 million to buy back up to 31 billion of its own shares. The shares will be purchased from the open market and effectively deleted.

This move is expected to boost metrics like Earnings Per Share and make existing shares more valuable without the company actually having to earn more revenue.

MTN noted that the share buyback will continue as long as the stock price adds value for remaining shareholders. It will not continue if the buyback merely wastes cash. The buyback is a significant pillar of the group’s effort to achieve Ambition 2030.

The deal is expected to be finalised in the second quarter of 2026, and MTN will sell-down 30% of IHS Nigeria to local Nigerian investors, on an arms-length commercial basis and subject to market conditions.