IHS and MTN have announced the renewal and extension of their Nigerian tower Master Lease Agreements (MLAs) until December 2032.
This agreement, covering approximately 13,500 tenancy contracts, solidifies the partnership between one of the world’s largest independent owners of shared communications infrastructure and Africa’s largest mobile network operator.
The renewal specifically addresses about 2,500 MTN Nigeria tenancies that were set to expire in 2024 and 2025. Under the new terms, IHS Towers will renew 1,430 tenancies, which includes new colocations.
The updated contracts introduce new financial terms designed to balance local and foreign currency components more sustainably and include a new diesel-linked cost component to hedge against fuel price fluctuations.
This extension highlights the critical role of IHS Towers’ infrastructure in supporting MTN Nigeria’s operations, which serve approximately 79 million subscribers. The agreement also underscores the robust operational relationship between the two companies.
The Chairman & CEO of IHS Towers,Sam Darwish, expressed his satisfaction with the agreement, stating, “This renewal marks a significant milestone for IHS Towers as we have now completed the renewal of all tower MLAs in Nigeria. It is a testament to the deepened relationship between our companies, and we are proud to extend our partnership into the next decade.”
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The new terms include a USD component with annual escalators tied to the US Consumer Price Index, a component linked to the Nigerian Consumer Price Index, and the newly introduced diesel-linked component to provide a buffer against diesel price volatility and currency fluctuations.
This agreement represents a major step forward for IHS Towers in strengthening its position in Nigeria’s telecommunications landscape.
