The changing shape of the Nigerian tower industry (May 2014)
TowerXchange forecasts that 84% of Nigeria’s towers will be owned and operated by independent towercos by the end of 2014
TowerXchange thought we’d take another look at the Nigerian tower industry in the light of the potential transfer of an estimated Nigerian 18,000 towers from operator-captive to independent towercos before the end of 2014. If Hotspot Network’s example is typical, showing the cost a a Nigerian cell site to be around US$236k, then the replacement value of the tower assets coming to market in Nigeria would be around US$4.25bn.
Nigeria is critical to the profitability of Africa’s tier one MNOs, who seem to have reached a consensus that their tower assets are no longer a source of competitive differentiation – either that, or they simply don’t want their towers to become stranded assets on their balance sheet as their competitors sell!
Airtel’s Nigerian towers are to be sold as part of their pan-African tower deal.