MTN Nigeria's Karl Toriola and Sam Darwish extend tower leases to 2032

Oluwatosin Racheal Alabi -

Key Points:

  • MTN Nigeria and IHS Nigeria have extended their tower lease agreements until December 2032, covering approximately 13,500 tenancy contracts.
  • The updated agreements include new financial terms, balancing local and foreign currencies with a diesel-linked component.
  • IHS Towers CEO Sam Darwish highlighted the milestone as a testament to their strong partnership and commitment to connectivity.

MTN Nigeria and IHS Nigeria have announced the renewal and extension of their Nigerian tower Master Lease Agreements until December 2032.

This agreement, unveiled on Aug. 8, 2024, covers approximately 13,500 tenancy contracts and ensures continued cooperation between the two companies.

Renewed and extended agreements

The updated agreement renews and extends around 2,500 MTN Nigeria tenancies, which were set to expire at the end of 2024 and in 2025. Additionally, IHS Towers will renew 1,430 tenancies and include new collocations under the new terms.

This renewal is a significant development for both companies, highlighting the importance of their partnership.

The new contracts feature updated financial terms, providing a more sustainable balance between local and foreign currency components, and include a diesel-linked component.

IHS noted that this arrangement underscores the importance of its infrastructure and the robust operational relationship with MTN Nigeria, which has approximately 79 million subscribers.

The updated terms include a dollar component benefiting from annual escalators linked to the US Consumer Price Index and a naira component benefiting from escalators linked to the Nigerian Consumer Price Index.

Additionally, a new component indexed to the cost of providing diesel power has been introduced to hedge against diesel prices and foreign exchange fluctuations.

Statements from key executives

Sam Darwish, chairman and CEO of IHS Towers, expressed his delight at the renewal and extension of the agreement with MTN Nigeria.

He remarked, “This marks a significant milestone for IHS Towers as it has completed the renewal of all tower MLAs in Nigeria, a testament to the deepened relationship between the two companies.”

Darwish also acknowledged the challenges faced in emerging markets and emphasized the importance of extending their relationship into the next decade. He highlighted their commitment to navigating global and local macro conditions while broadening mobile connectivity in Nigeria through critical infrastructure.

The renewal and extension of the tower lease agreements between MTN Nigeria and IHS Nigeria shows a continued partnership and commitment to improving mobile connectivity in Nigeria.

This development ensures that both companies can navigate the challenges of the telecommunications industry and maintain a robust operational relationship, benefiting millions of subscribers across the country.

IHS Holdings, founded in 2001 by Darwish, is the largest telecom infrastructure group in Africa, Europe, Latin America, and the Middle East. It ranks as the third-largest independent multinational tower company globally by tower count.

Since October 2020, Toriola’s leadership has driven MTN Nigeria’s growth, focusing on innovative services and solutions.