According to industry reports, IHS Nigeria, a subsidiary of IHS Holding Limited, and MTN Nigeria, a subsidiary of MTN Group, have announced an agreement to renew and extend all Nigerian Tower Master Lease Agreements until December 2032. This agreement covers approximately 13,500 tenancy contracts.
Under the renewed terms, IHS Towers will be renewing 1,430 tenancies, including new colocations, out of the approximately 2,500 MTN Nigeria tenancies due to expire by the end of 2024 and 2025.
The renewed and extended contracts feature new financial terms to provide a more sustainable split between local and foreign currency and a new diesel-linked component. This underscores the criticality of IHS Towers’ infrastructure and the strong operational links between IHS Towers and MTN.
In a statement released by IHS Holding Limited, the company outlined the new terms, which include a dollar component benefiting from annual escalators linked to the US Consumer Price Index, a naira component benefiting from escalators linked to the Nigerian Consumer Price Index, and a new component indexed to the cost of providing diesel power to hedge against diesel prices and FX fluctuations. These terms are designed to bring value to both parties, ensuring a mutually beneficial agreement.
Sam Darwish, the Chairman and CEO of IHS Towers, expressed his delight at the renewal and extension of the agreement with their largest customer, MTN Nigeria. He emphasized the significance of completing the renewal of all tower MLAs in Nigeria and highlighted the deepened relationship between the two companies. Darwish also acknowledged the challenges faced in emerging markets and expressed pride in extending their relationship into the next decade, working together to broaden mobile connectivity in Nigeria through critical infrastructure.
