Trends
IHS Towers secures extended lease agreement with MTN Nigeria
IHS Towers renewed its 13,500-site lease with MTN Nigeria until 2032, adjusting terms to tackle Nigeria’s economic challenges.
Headline
IHS Towers renewed its 13,500-site lease with MTN Nigeria until 2032, adjusting terms to tackle Nigeria’s economic challenges.
Context
OUR TAKE IHS Towers’ lease renewal with MTN Nigeria marks a strategic adjustment to Nigeria’s challenging economic landscape. By sharing site management with ATC Nigeria, both companies are aiming to secure their positions in Africa’s telecom industry. This deal reflects the ongoing battle for market dominance amid rising operational costs and economic instability. –Jasmine Zhang, BTW reporter IHS Towers has renewed and extended leases with MTN Nigeria for 13,500 telecom sites until 2032. This agreement marks progress following economic challenges and strained relations. The new lease terms are adapted to the current economic climate, reducing the USD-indexed component and adding a diesel price index to mitigate risks.
Evidence
Pending intelligence enrichment.
Analysis
Specifically, it is less tied to the US dollar and more dependent on the naira, which allows rents to fluctuate more in line with the local currency. A diesel price index has been added to the new lease terms, meaning rents can be adjusted according to changes in diesel prices. Keeping rents more in line with actual operating costs ensures that IHS Towers can operate even when fuel prices fluctuate. Despite past tensions, including MTN’s decision to not renew 2,500 sites with IHS, this deal provides stability for both companies, with IHS retaining a significant portion of its tenancies and MTN better managing financial pressures in Nigeria. Also read: Lonestar Cell MTN commit to supporting Remar Liberia Also read: MTN plans to build the largest data centre in West Africa
Key Points
- IHS Towers renewed its 13,500-site lease with MTN Nigeria until 2032, adjusting terms to tackle Nigeria’s economic challenges.
- The deal stabilises operations by linking payments to the naira and addressing fuel cost fluctuations.
Actions
Pending intelligence enrichment.
