Documents filed with the United States Securities and Exchange Commission on February 18 show that MTN will maintain pay and core benefits for IHS employees for one year after the merger takes effect.

IHS had 2,864 employees worldwide as of December 31, 2024. Many of them work in Nigeria, where both companies play major roles in telecoms infrastructure.

Under the agreement, MTN must keep compensation and benefits at levels no less favourable than those in place before the deal closes. The protection period is described in Section 6.7 of the Agreement and Plan of Merger as a 12-month “Continuation Period”.

During that time, base salaries or hourly wages will remain in place. Short-term cash incentives must stay comparable. Health, retirement and welfare benefits must also stay similar in overall value. Defined benefit pensions and some local post-employment benefits are excluded.

MTN has also agreed to honour existing IHS severance terms. Any employee who loses their job during the protection period will receive severance benefits no less favourable than those already provided under IHS policies.

The company will recognise prior years of service for benefit eligibility, vesting and holiday accrual. Staff will not see their tenure reset after the merger.

Equity awards will be handled in cash. Vested stock options and restricted stock units are expected to be cancelled and converted into cash payments based on the merger price.

Unvested awards may be converted into cash-based retention incentives that continue to vest on their original schedules.

The acquisition is structured as an all-cash transaction at $8.50 per share. That represents a 239% premium to IHS’s share price at the start of its 2024 strategic review and a 36% premium to its 52-week average.

The deal excludes IHS’s Latin American assets. It focuses on Africa, the Middle East and selected emerging markets.

Funding will come from $1.1 billion in cash already on IHS’s balance sheet and another $1.1 billion from MTN’s liquidity and debt capacity.

IHS owns and manages about 39,000 telecom towers across Africa, the Middle East and Latin America. Nigeria is its largest market.

If completed, the transaction will bring those towers under closer control of MTN. The company will rely less on third-party tower operators and will also gain stronger management over passive mobile infrastructure across its footprint.

Reports say this could help MTN cut operating expenses, improve network reliability and speed up 5G rollout in key African markets. It also places MTN in a stronger position against competitors such as Airtel Africa and Orange.

Regulators in Nigeria and other countries are expected to examine the deal as towers are critical national infrastructure. Labour authorities are also likely to monitor how the 12-month pay and benefits guarantee is carried out, especially in markets where both firms employ large workforces.

The offer provides immediate cash at a premium for IHS Towers shareholders and secures long-term control of essential infrastructure for MTN, which underpins its network operations.

But then, here we are. The sector’s contribution to the economy is so massive that ignoring it would be like pretending petrol isn’t essential to your car just because the tank is full.

It grew at a real rate of 5.78% in Q3 2025 and accounted for roughly 9.1% of GDP, proving that even in a country notorious for regulatory tangles and infrastructural challenges, telecoms are the backbone of modern Nigeria.

But don’t be deceived by these figures, there’s still a world of congestion, fibre cuts, high expenses, and millions of frustrated subscribers tapping the screen for just one uninterrupted call.

Subscriber Growth and Broadband Penetration: Two Extremes

Active mobile subscriptions hit ~169.3 million in January, growing steadily to 175 million by December, nudging teledensity past 80%, the highest since early 2024. 

We could call this progress since Nigerians are connecting, surfing, streaming, and transacting digitally more than ever. Broadband adoption, too, edged towards 50%, with nearly 49.9% penetration by December 2025, inching closer to the National Broadband Plan’s 70% target.

However, numbers can be deceiving. While urban dwellers bask in fibre-optic speeds and 4G coverage, rural users are fighting with patchy signals and pricey data, nudging us that half the population is still a click away from the digital economy.

Investment, Tariffs, and Infrastructure

Telecom operators collectively poured ~₦824.7 billion into network expansion in H1 2025 alone. Add $1 billion in projected infrastructure investment and the government’s approval of 7,000 new towers, and it looks like Nigeria’s networks are finally meeting up with demand.

Tariff reforms, including a 50 % headroom on pricing, spurred roughly $2 billion in equipment imports, showing serious investor assurance. 

Still, operators battled record operational costs of ~₦5.85 trillion, thanks to energy expenses, multiple taxes, and the notorious Right of Way fees. Growth may be visible on the surface, but the price of keeping the lights, and signals, on is still a big issue.

Technology Deployment: 4G Dominates, 5G Stutters

4G remained king, covering more ground and enabling surges in data consumption. 5G, on the other hand, limped along at ~3.4 % market share, limited by device affordability and limited rollout. 

It’s a classic story where infrastructure exists, purpose exists, but the average Nigerian smartphone wallet does not.

The pledge of next-gen connectivity is there, but the reality is uneven adoption. Even as data usage peaked at 1.15 million terabytes in August, a noteworthy portion of the population is left waiting for the high-speed revolution.

Operator Performance: Leaders, Survivors, and Stragglers

MTN Nigeria retained its crown with ~90.33 million subscribers (~52 % market share). Data revenue surged 69.2 %, while voice grew 40.3 %, enabling MTN to swing from an operating loss in 2024 to a profit in H1 2025. 

The operator also struck a national roaming and spectrum sharing agreement with 9mobile to ease coverage gaps.

Airtel Nigeria was the second-largest operator, hovering around ~58.47 million subscribers (~34 % market share). Its mobile money platform boosted digital revenue, while strategic tariff adjustments helped maintain steady growth.

Globacom recovered modestly to ~21.39 million subscribers (~12 %), but growth lags behind MTN and Airtel, reflecting lingering regulatory and competitive challenges.

9mobile, the smallest operator in terms of numbers, barely moved the needle at ~3.11 million subscribers (~1.8 %). Its mid-year infrastructure-sharing deal with MTN produced minimal subscriber growth, stressing the uphill battle against market authority and service quality issues.

The Dark Side of 2025: Costs, Complaints, and Inequalities

Despite subscriber growth, users complain of slow internet, frequent signal drops, and service congestion. 

Inflation and naira depreciation pushed tariffs higher, leaving low-income households increasingly excluded. Even with near-50% broadband penetration, rural areas lag badly, sustaining a stubborn digital divide.

Infrastructure vandalism and fibre cuts added to the challenge, while regulatory stress and multiple levies, up to 18-20 taxes per service, kept operators constantly on edge. 

Add delayed privatisation of NATCOM and stalled 5G expansion, and it’s apparent that 2025 was a high-wire balancing act, with massive growth shadowed by operational and structural challenges.

Data Usage and Digital Consumption

Data consumption drove Nigeria’s telecom sector growth in 2025. GSM internet subscribers reached 140.36 million, and monthly traffic peaked at 1.15 million terabytes. 

These trends show a high dependency of Nigeria’s population on mobile internet for work, entertainment, education, and finance. It’s a digital sector expanding speedily, even if unevenly.

Policy and Regulatory Space

The government removed a 5% telecom tax mid-year, though analysts warned it wouldn’t automatically lower prices for consumers. 

NCC’s robust monitoring and reporting framework ensured operators stayed accountable, but the environment remained heavy with compliance requirements. 

Regulatory complexity continues to shape strategic decisions, especially for operators outside the top two.

2025 in Summary: Progress with Strings Attached

• The Good: Subscriber numbers hit record highs, broadband approached 50%, GDP contribution remained strong, and 4G/5G coverage expanded steadily.
• The Bad: High operational expenses, affordability limitations, service quality issues, uneven rural coverage, and slow 5G adoption.
• Operator Reality: MTN tops, Airtel holds steady, Globacom recovers slowly, 9mobile struggles.

Nigeria’s telecom sector in 2025 is a study in contrasts, incredible growth and investment, paired with structural and operational challenges. 

If the past year teaches us anything, it’s that subscriber numbers and GDP contribution are not the entire measure of success. Can expansion be turned into reliable, affordable, and inclusive service? So that the mobile revolution benefits not just the urban elite, but the entire nation.

The National Bureau of Statistics revealed that the sector grew by 21.49% in the third quarter of 2025, a break from the long period of slow growth the industry faced in previous years.

The economy also strengthened as real GDP rose by 3.98% year-on-year, slightly above the 3.86% recorded in Q3 2024. Reports link the improvement to the ongoing GDP rebasing exercise and the policy changes introduced since last year, including the fuel subsidy removal and the liberalised exchange rate.

Services were the country’s main economic engine. The sector accounted for 53.02% of economic output, an increase from 52.93% a year earlier. Telecoms sit within this category and contributed ₦7.47 trillion, showing a rebound as demand for data surged and tariff adjustments took effect.

Driving the growth, operators expanded their customer base, with Nigeria’s mobile subscriptions climbing past 220 million in 2025. MTN led the market with 87.5 million users, representing 51.7% share, while Airtel followed with 57.6 million subscribers and 34.1% share.

Investment has also picked up. Operators have been pushing more fibre into cities and preparing for wider 5G rollout. From what I’ve seen, this has helped steady the industry at a time when many sectors are struggling with rising costs and tight consumer spending.

The growth fed directly into company earnings. MTN and Airtel jointly reported ₦5.16 trillion in revenue over the first nine months of the year. MTN moved from a ₦514.9 billion loss to a ₦750.2 billion profit, while Airtel posted $376 million in profit after recording foreign-exchange gains.

Stronger profits mean higher tax obligations, which could provide a timely increase to federal revenue in 2025. This aligns with the outlook shared earlier by the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, who said the digital economy could generate $18.3 billion by 2026. “The digital economy could generate up to $18.3 billion by 2026,” he said.

Beyond Nigeria’s telecom sector itself, the new data point to a structural change in the economy. The non-oil sector now accounts for more than 96% of national output, underlining Nigeria’s gradual move away from crude oil dependence. 

Telecoms, with their expanding subscriber base and more investment, are becoming one of the pillars of this transition.

Telecoms are no longer just a supporting segment. They are helping build the country’s economic direction, driving growth, improving tax revenue prospects, and building the backbone for the digital economy Nigeria wants to scale by 2030.

This contrast, according to Engr. Gbenga Adebayo, National Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), reveals how far the nation has grown in connectivity, and how far it still has to go.

Speaking at Nigeria’s first Rural Connectivity Summit, organised by Business Metrics in Lagos, themed “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” the Chairman of ALTON noted that while Nigeria’s telecom sector has made progress in 24 years, true digital inclusion is still out of reach for many living in rural areas.

“People are concluding transactions, doing e-services, and even talking to their doctors as we speak. This is how far we have gone as a people in 24 years,” Adebayo said, recalling how making an international phone call once required hours of waiting at public call centres in Lagos.

He described the divide between urban and rural areas as “a major departure,” pointing out that in many villages, residents still climb hills or trek to mountaintops just to get mobile network signals. For him, the question at the centre of the rural connectivity challenge is fundamental: “Who should own the local network?”

Adebayo argued that just as communities once came together to build schools, churches, and mosques, they should also be empowered to build and own their local communication infrastructure. “If the communities own those networks, they will protect them. It will be difficult for anyone to vandalise what they built,” he stated.

He criticised the frequent vandalism of telecom sites, describing how solar panels are sometimes stolen and used for leisure activities. “Today, we are seeing cases of people vandalising sites and taking the solar cells to play table tennis in the village square. That will not happen if they own those networks,” he said.

Adebayo urged government and regulators to create incentives for rural operators, including tax waivers, free rights of way, and easier access to land. Pointing to Niger State as an example, he said large-scale solar farms could thrive there if policies encouraged investment. “If you want to deploy hundreds of kilometres of solar farms, go there. The land is free,” he said.

He also proposed that Nigeria’s data centre operators should consider relocating parts of their operations to rural states where land is cheaper and more available. “In the centres where we are concentrated, we are struggling for everything, from power to water. Maybe it’s time we begin to think of taking some of these data centres offsite,” he added.

The ALTON Chairman emphasised that rural connectivity shouldn’t be limited to infrastructure, ensuring new opportunities, security, and restoring dignity are highly important. “Rural connectivity is not just about expanding network coverage, but about expanding opportunities,” Adebayo said. 

“If people have the same value and opportunities in those tier two, three, and four cities, they will have a better quality of life than the daily struggles in the urban centres.”

“Together, we can be rural connected, not just as a policy aspiration, but as a living reality in every part of the country.”

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed the figure during an interactive session with journalists in Lagos. 

He credited the capital inflow to a January policy that allowed mobile network operators (MNOs) to raise tariffs by up to 50%, a move that ended almost a decade of price stagnation.

“This act alone, has allowed investments to flow in. We will be revealing more specific figures in the coming weeks after verification, but we are talking about over a billion dollars’ worth of investment in 2025 alone,” Maida said.

Before the change, MNOs were locked into fixed pricing while other players in the telecom value chain, such as tower operators, could adjust their rates annually to account for inflation and currency depreciation. Maida said the imbalance eroded investor confidence and slowed network expansion, leaving service quality to deteriorate.

“This is an industry that requires continuous investment. The world is moving ahead, and if we do not create the right conditions, we will be left behind,” he warned.

The reform, which aligns with the 2000 Telecom Policy and the 2003 Communications Act, is already translating into tangible results. According to Maida, equipment that had not been purchased in years is now being ordered, with shipments arriving since June. Operators are actively rolling out upgrades and building new sites nationwide.

While the investment trend is positive, the sector faces operational challenges. Telecom operators consume more than 40 million litres of diesel each month, costing over $350 million annually, to keep base stations running.

“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida noted, highlighting the industry’s total reliance on foreign exchange for network equipment, software, and hardware.

The NCC is also collaborating with the Rural Electrification Agency (REA) to deploy renewable energy solutions at telecom sites, reducing dependence on imported diesel and improving rural connectivity.

Infrastructure security is a priority. The NCC, working with the Office of the National Security Adviser (ONSA), is developing region-specific rapid response plans to address threats such as vandalism, fibre cuts, and generator theft.

Maida explained that strategies vary by location, coastal regions may need stronger community engagement, while high-risk zones require greater civil defence presence. The aim is to tackle both immediate security threats and structural issues that leave infrastructure exposed.

In addition, the regulator is tightening corporate governance standards for telecom operators. New requirements, set to take effect in the fourth quarter of 2025, include enhanced board oversight, stronger risk management frameworks, and regular compliance audits.

With Nigeria’s telecom sector currently valued at $9.52 billion and projected to more than double to $22.82 billion by 2029, the NCC believes these reforms will boost investments and keep the country competitive in the global digital economy.

The company is prioritising core operations in Nigeria, South Africa, and Brazil, while exiting less profitable markets through major asset sales.

The group spent $89.9 million on new tower projects in H1, a 15.8% drop from the $106.8 million invested a year earlier. The slowdown was felt across both quarters: Q1 capital expenditure fell 17.8% to $43.6 million, and Q2 slipped 13.8% to $46.3 million. 

Cuts were most pronounced in Latin America, where new site builds and fibre rollouts were scaled back, while Nigeria saw investment fall by 5.5% in Q1 and 10.4% in Q2 due to reduced maintenance, fibre deployment, and site upgrades.

This reallocation is closely tied to a deliberate reshaping of IHS’s portfolio. In December 2024, the company sold 1,672 towers in Kuwait, and in May 2025 it announced the $274.5 million sale of its Rwanda operations—including 1,465 sites—to Paradigm Tower Ventures at a valuation multiple of 8.3x adjusted EBITDA, well above the group’s average. 

These divestments are intended to streamline operations and focus on markets offering long-term tenancy agreements and stronger co-location potential.

Debt reduction has become a clear priority. Proceeds from disposals have been channelled into paying down high-interest loans in Nigeria and Brazil, cutting the net leverage ratio from 3.9x in 2024 to 3.4x in Q1 2025. Full-year capex guidance has also been revised down to $240–$270 million from $260–$290 million. 

Nigeria’s “Project Green,” launched in 2022 to cut diesel dependence through solar deployment, battery storage integration, and improved grid connectivity, has reduced upgrade requirements and is projected to generate $77 million in annual free cash flow savings by year-end.

However, the biggest operational pressure has come from tenant churn in Nigeria. MTN Nigeria, the company’s largest client, renewed 13,500 tenancies through to 2032 but opted not to extend 1,050 sites, awarding those to American Tower Corporation. 

This resulted in a net loss of 420 tenants in Q1 and 688 by Q2 on a year-on-year basis. Despite the setback, IHS Towers maintained a colocation rate of 1.52x in Nigeria—on par with emerging market norms—and has sought to backfill churned sites with other customers.

MTN’s decision shows a push to diversify its infrastructure partners and manage cost and operational risk. Its contracts with both IHS and ATC include clauses linking pricing to inflation and diesel costs, alongside mixed naira-dollar payment structures to mitigate currency volatility.

Financially, the company’s performance has been resilient. H1 revenue reached $872.9 million, with Q1 rising 5.2% year-on-year to $439.6 million on the back of 25.6% organic growth, while Q2 slipped marginally by 0.5% to $433.3 million but still beat market expectations. 

Adjusted EBITDA stood at $252.6 million in Q1 and $248.5 million in Q2, while net income rose to $30.7 million and $32.3 million, reversing losses recorded last year. Operating cash flow jumped 68.1% to $254.8 million.

Commenting on the results, Sam Darwish, CEO of IHS Towers, said: “Our improved outlook reflects what we believe are the benefits of the solid commercial progress we have made as well as our strong focus on financial discipline, which is delivering sustained improvements in our profitability and cash flow generation.”

IHS expects 5G rollouts to drive further lease amendments, new site demand, and higher colocation rates across Africa. 

With the naira recording only a 0.3% devaluation in Q2, management is optimistic that foreign exchange conditions will support its full-year revenue guidance. The challenge for H2 will be balancing reduced investment with maintaining growth momentum in its largest and most competitive markets.