MTN Nigeria is currently engaged in the process of renegotiating its tower contracts, aiming to drive periodic reviews. The company emphasized the significance of these contract renegotiations in mitigating the impact of forex liberalization and higher energy costs. This announcement comes in the wake of MTN Nigeria's recent award of tower contracts to ATC and the impending renewal of another 1,500 site contracts. Karl Toriola, the Chief Executive Officer of MTN Nigeria, shared these insights during the recent MTN Nigeria’s Capital Markets Day.

Toriola highlighted the importance of efficient tower contracts in driving cost-effective, deep broadband penetration and leading technology across their operations. He emphasized the company's commitment to periodically reviewing contracts with partners to ensure they optimally meet site requirements. Additionally, he stressed the focus on cost optimization, green energy utilization, and sustainability in their operations.

During the presentation, MTN Nigeria's Chief Financial Officer, Modupe Kadri, provided a breakdown of the company’s tower business. Kadri revealed that IHS currently holds 14.6k sites (80 per cent) compared to ATC’s 2.3k sites (13 per cent). Notably, approximately 2.5k network sites under the IHS portfolio, set to expire in 2024 and 2025, have been awarded to ATC following a highly competitive bidding process. This move will reduce IHS’ portfolio to 12.1k sites (66 per cent) and increase ATC's to 4.7k sites (26 per cent) of the entire portfolio. Kadri emphasized the importance of tower contract renegotiation and disciplined capital allocation in mitigating the impact of forex liberalization and higher energy costs.

Furthermore, the company expressed its excitement about the prospect of a liberal economic reform agenda for Nigeria, which presents an opportunity to unleash its latent growth potential.

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