Tower company IHS Towers has announced that Airtel Nigeria has a signed a deal to renew its contract in the country.

As part of the renewed terms, Airtel has also committed to take 3,950 tenancies over the next five years, with the majority expected over 2024/2025, and extend the term of its existing tenancies covering around 6,000 tenancies until December 2031.

Nigerian telecoms tower
– Getty Images

According to IHS Towers, the agreement includes 2,500 colocations in addition to 5G amendments and build-to-suit sites to be owned and operated by IHS Nigeria.

The duo will also work on reducing carbon emissions and have agreed to cooperate on new green initiatives on the collective sites.

"The expansion and renewal of our relationship with Airtel Nigeria is a testament to our continued commitment to serving our customers and the connectivity demands of Africa," said Sam Darwish, chairman and CEO, IHS Towers.

"Airtel Nigeria, as well as Airtel Africa who we serve in other markets in Africa, has been a long-term partner of IHS, and I am delighted that we continue to strengthen our collaboration to help facilitate mobile connectivity in our largest market, supporting our customers in rolling out new sites throughout Nigeria.”

The contract win is a positive for IHS, which lost out on a contract with rival operator MTN for the lease of 2,500 towers last year.

Despite offering MTN improved terms, the telco opted for a contract with American Tower instead.

IHS owns 16,000 towers in Nigeria, of which 14,600 are leased by MTN. Around 13 percent of MTN's portfolio is with ATC, while 80 percent is with IHS.