MTN Nigeria  stands by towers deal with ATC as IHS deal rumours swirl

Joy Agwunobi

MTN Nigeria has responded to media reports that it may back out of its planned lease of 2,500 of its tower sites to American Tower Corporation (ATC), stating that the deal will go ahead as planned. The company’s response comes after its former tower contractor, IHS, allegedly offered a more attractive deal to regain the contract. 

The telecom giant stated unequivocally that it has no intention of reversing its decision to lease its tower sites to ATC. The company went on to explain that the contract with ATC was awarded following a competitive bidding process, and that it has not received any new offers from IHS. It also emphasised its commitment to the lease agreement with ATC and reaffirmed that the deal will proceed as announced.

Tobechukwu Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, described the reports that the company is reconsidering its decision to lease its tower sites to ATC as “false.” He also reiterated that the company remains committed to the agreement with ATC and that there is no truth to the rumours that it might be changing its mind.  

Okigbo stated, “The agreement with ATC over the 2,500 sites is final, having gone through a rigorous process involving our highest governance approvals. Our preference is always for bilateral renewal, subject to competitive pricing and terms. In this instance the ATC proposal was superior.

“MTN will continue to engage constructively with IHS on further opportunities that arise, including the renewal of the next vintages of towers that come up for renewals in 2025. Other opportunities for value optimization will arise and we will undertake a similar exacting process. We are hopeful that participating parties including IHS will present a compelling proposition.” 

In response to concerns about potential network disruptions and environmental damage caused by the transfer of towers from MTN to ATC, Okigbo said that such claims are “false and misleading.” He explained that a transfer of ownership between two infrastructure companies does not typically result in disruptions, and that MTN has confidence in ATC’s ability to ensure a smooth and seamless transition.

“Through our partnership with ATC, we are laying the groundwork for a new era of connectivity in Nigeria, one that meets the needs of our customers while advancing our goals of cost efficiency, sustainability, and environmental responsibility,” he said.

Okigbo also noted that MTN expects ATC to adhere to all applicable regulations from the Nigerian Communications Commission (NCC) and the National Environmental Standards and Regulations Enforcement Agency (NESREA) when it comes to deploying and operating telecom sites. He confirmed that MTN is serious about its pledge to achieve net-zero emissions and that ATC’s commitment to operating green sites is one of the reasons it was selected as a partner.

In addition, Okigbo refuted claims that the transfer of the tower sites would have a negative environmental impact, stating that the partnership with ATC will actually reduce greenhouse gas emissions.