Reintegration or Monopoly? Reading MTN–IHS Deal Through Nigeria’s Antitrust
Framework Akinnuoye Abisola Blessing In recent months, there has been a lot of conversation around market dominance and monopolization of various sectors by businesses in Nigeria. Of particular interest is
The recent acquisition of IHS Holding Limited by MTN Group has ignited discussions around the potential for monopolization in Nigeria's telecommunications sector. The transaction, which would see MTN acquire full control of IHS, a major telecommunications infrastructure company, has raised concerns about the effectiveness of existing antitrust laws in preventing market domination.
In Nigeria, the Federal Competition and Consumer Protection Act (FCCPA) of 2018 serves as the primary legislation governing competition and antitrust matters. According to Section 70 of the Act, a company controlling at least 40% of the market may be presumed dominant unless proven otherwise. However, mere dominance is not enough to deem a company's actions unlawful; the abuse of dominance is what the FCCPC aims to prevent.
The MTN-IHS case study highlights the complex relationship between the two companies, which began as a strategic partnership involving tower-sharing arrangements. Over time, MTN acquired a majority stake in IHS, forming one of Africa's most significant telecommunications infrastructure partnerships. If the proposed acquisition is realized, MTN would not only control IHS but also the infrastructure used by its competitors, potentially giving it an unfair advantage in the Nigerian telecommunications market.
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