Up until the end of 2032, about 13,500 tenancies are covered by renewals. Reaffirms the importance of the IHS infrastructure in enabling mobile connectivity and the long-term partnership with MTN.
Thank you for visiting The Vestigator, don't forget to share!
MTN Nigeria (NGX:MTNN), a division of Africa’s largest mobile network operator MTN Group (JSE:MTN), and IHS in Nigeria, a subsidiary of IHS Holding Limited (NYSE:IHS) (“IHS Towers”), one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, today announced an agreement to renew and extend all Nigerian tower Master Lease Agreements until December 2032, covering roughly 13,500 tenancy contracts. IHS Towers will renew 1,430 tenancies (including new colocations) in relation to the roughly 2,500 MTN Nigeria tenancies that were scheduled to expire at the end of 2024 and in 2025 under the revised terms.
The contracts have been renewed and extended, with new diesel-linked terms and new financial terms that offer what the parties consider to be a more sustainable mix between local and foreign currency.
The agreement demonstrates the importance of IHS Towers’ operational connections and the criticality of its infrastructure to MTN, Nigeria’s largest mobile network operator with almost 79 million subscribers. The new terms include a new component indexed to the cost of providing diesel power, introduced to act as a hedge against diesel prices and FX fluctuations, an NGN component that will benefit from escalators linked to the Nigerian Consumer Price Index, and a USD component that will continue to benefit from annual escalators linked to the US Consumer Price Index.
As a result of completing the renewal of every tower MLA in Nigeria, IHS Towers has reached a noteworthy milestone that attests to the strengthened partnership between the two businesses. “We are delighted to announce the renewal and extension of our agreement with our largest customer, MTN Nigeria,” stated Sam Darwish, Chairman and CEO of IHS Towers. IHS Towers has completed the renewal of every tower MLA in Nigeria, which is a noteworthy accomplishment and evidence of the two firms’ growing partnership.
We are aware of the difficulties encountered in developing nations and are pleased to continue our partnership for ten more years, cooperating to manage regional and international macroeconomic environments as we expand mobile coverage in Nigeria by means of our vital infrastructure.
