MTN, IHS Nigeria renew tower agreements to 2032
IHS Nigeria, a subsidiary of IHS Holding Limited, and MTN Nigeria have announced the renewal and extension of their Nigerian tower Master Lease Agreements through December 2032.According to a statement posted on Wednesday, the arrangement covers over 13,500 tenancy contracts, with approximately 2,500 MTN Nigeria leases set to expire in 2024 and 2025.
IHS Towers, one of the leading independent owners, operators, and developers of shared communications infrastructure, will renew 1,430 leases under the new deal, which includes new collocations.
According to the corporation, the amended contracts include new financial parameters that provide a more sustainable mix of local and international currencies, as well as a diesel-linked component.
According to IHS, this arrangement demonstrates the value of its infrastructure and the good working relationship with MTN Nigeria, which has over 79 million subscribers.
"Under the new terms, there is a dollar component that will continue to benefit from annual escalators linked to the US Consumer Price Index, a naira component that will benefit from escalators linked to the Nigerian Consumer Price Index, and a new component indexed to the cost of providing diesel power, introduced to act as a hedge against diesel prices and FX fluctuations," according to the statement.
Sam Darwish, Chairman and CEO of IHS Towers, said, "We are pleased to announce the renewal and extension of our agreement with our largest customer, MTN Nigeria.
"This is an important milestone for IHS Towers because it has completed the renewal of all tower MLAs in Nigeria, demonstrating the strengthened connection between the two firms.
"We are cognisant of the challenges faced in emerging markets and are proud to extend our relationship into the next decade, working together to navigate global and local macro conditions while broadening mobile connectivity in Nigeria through our critical infrastructure," says Darwish.
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