Nigeria: IHS renews tower lease contracts with MTN

August 12th 2024

Africa, ICT News, MTN, network

Telecom infrastructure provider IHS Nigeria, a subsidiary of IHS Towers, announced last week that it has signed an agreement with MTN Nigeria to renew and extend all tower lease agreements through December 2032. The partnership covers approximately 13,500 telecom towers.

“The renewed and extended contracts include new financial terms that the parties believe provide a more sustainable mix of local and foreign currency, as well as a new diesel component,” IHS Towers said.

The new agreement comes about 11 months after MTN Nigeria announced it will begin leasing 2,500 network sites from ATC from 2025, when the current contract with IHS Nigeria expires. The move is part of the telco’s drive to renegotiate and diversify its tower lease agreements to improve efficiency and ensure optimal performance from vendors.

Faced with this situation, IHS Holding has offered “  better commercial terms  ” to MTN Nigeria in December 2023. It has just announced that it has obtained the renewal of 1,430 rental contracts, including new co-locations.

The new deal is expected to see IHS Towers strengthen its presence in the Nigerian telecoms market. The company currently owns 16,000 towers in Nigeria, of which 14,600 are leased by MTN. In February, IHS also renewed its contract with Airtel Nigeria for approximately 6,000 towers until 2031.

Source: Agency EcoFin

Back