MTN Nigeria is currently renegotiating periodic reviews of the company’s tower contracts.
The Punch reported that the company pointed out that these contract renegotiations are critical to lessening the effects of increasing energy prices and FX liberalization.
The company made this announcement in light of the recent tower contracts it awarded to ATC and the upcoming renewal of 1,500 more site contracts.
The CEO of MTN Nigeria, Karl Toriola, shared this insight during the organization’s most recent Capital Markets Day.
“We will periodically review the contracts we have with our partners to ensure they optimally meet our site requirements,” he said. “Efficient tower contracts are key in driving cost-effective, deep broadband penetration and leading technology across our operations.”
“But in addition to efficiency, we’ll also be concentrating on cost optimization, using green energy, and sustainability.”
The Chief Financial Officer of MTNN, Modupe Kadri, provided an overview of the company’s tower operations in his presentation.
He said, “IHS currently has 14.6k sites (80%) compared to ATC’s 2.3k sites (13%). ATC was granted around 2.5k network sites under the IHS portfolio, which are scheduled to expire in 2024 and 2025, following an intensely competitive bidding process.
“As a result, ATC will represent 26% of the total portfolio, increasing to 4.7k sites from IHS’s 66% portfolio of 12.1k sites. Most of the remaining IHS sites will close in 2029, with the remainder expiring between 2025 and 2029.
“Renegotiating tower contracts and maintaining a disciplined capital allocation plan is critical to reducing the effects of currency liberalization and rising energy prices.”
The company went on to say that it is thrilled about the possibility of a liberal economic reform plan for Nigeria, which offers a chance to unlock the country’s potential for prosperity.