*1. Tower Lease Agreements Renegotiated*
– MTN Nigeria renegotiates tower lease agreements with IHS and ATC Nigeria
– New terms effective from April 1, 2024, and extended to December 31, 2032
*2. Key Changes*
– Leases now majority naira-based, reducing US dollar-indexed component
– Cap set for naira CPI escalator component
– Technology-based pricing removed, with payments based on tower space and power
– Energy cost component indexed to diesel power cost, with discounts and incentives
*3. Site Allocation Agreement*
– MTN Nigeria, ATC Nigeria, and IHS agree on revised site allocation
– ATC to provide tower services for up to 2,100 sites
– IHS to manage up to 1,400 sites, including 1,000 new MTN Nigeria sites
*4. Benefits*
– Expected to unlock significant network cost efficiencies
– Supports expense efficiency program to improve operating margins and capital position
– Mitigates macro risks affecting the business
– Supports recovery of negative equity position
*5. CEO’s Comment*
“We are pleased with the successful renegotiation of our tower lease agreements with IHS and ATC, which reflect a collaborative and mutually beneficial outcome aligned with the long-term interests of all parties involved. We anticipate that these amendments will unlock significant network cost efficiencies in line with our expense efficiency program to improve our operating margins and capital position over the medium term.” – Karl Toriola, CEO, MTN Nigeria.
