IHS Nigeria, a subsidiary of IHS Holding Limited, and MTN Nigeria have stated the renewal and extension of their Nigerian tower Master Lease Agreements until December 2032.
A statement released on Wednesday stated that the agreement includes over 13,500 tenancy contracts, of which about 2,500 MTN Nigeria leases were scheduled to expire in 2024 and 2025, according to The Punch.
IHS Towers, one of the largest independent owners, operators, and developers of shared communications infrastructure, in the new agreement, will renew 1,430 tenancies, including new collocations.
According to the firm, the updated contracts feature new financial terms, providing a more sustainable balance between local and foreign currency, as well as a diesel-linked component.
This arrangement, according to IHS, highlights the value of its infrastructure and the strong working relationship with MTN Nigeria, which has about 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,” the statement highlighted.
The Chairman and CEO, IHS Towers, Sam Darwish, said, “We are delighted to announce the renewal and extension of our agreement with our largest customer, MTN Nigeria.
“This marks a significant milestone for IHS Towers as it has completed the renewal of all tower MLA’s in Nigeria, a testament to the deepened relationship between the two companies.
“We are cognizant 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,” Darwish remarked.
