Nigerian Market Drives IHS Towers' Revenue Growth
IHS Towers, a global leader in shared communications infrastructure, has announced that it generated $268 million in its Nigerian market for the third quarter of 2025. The growth was driven by adjustments in telecom tariffs, a strong naira, and increased demand from leading mobile network operators (MNOs) such as MTN and Airtel.
According to the company’s Q3 2025 earnings report, its Nigerian revenue accounted for almost 59% of its total revenue of $455 million. Despite ongoing telecom site vandalism in Nigeria, the revenue grew 11% year-on-year (YoY), which significantly contributed to the group’s overall 8.3% YoY revenue growth.
IHS Towers is a leading independent tower company in emerging markets, and Nigeria is one of its most important geographies. The company maintains over 16,000 base stations to support the day-to-day operation of telecom services.
Financial Highlights and Operational Performance
During the period under review, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the Nigerian market were $170 million, representing a 7% YoY increase. Meanwhile, the EBITDA margin decreased by 230 basis points to 63.3% due to rising operating costs, inflation-related cost adjustments, and expenses associated with T2Mobile’s (formerly 9mobile) revised agreements.
In addition, the group saw an adjusted EBITDA of $261 million, while adjusted levered free cash flow surged 81% year-on-year to $158 million. The company also recorded earnings per share of $0.44, above the projected $0.11, resulting in a 13.37% surge in pre-market stock price to $7.63.
Optimism for Nigeria's Economic Trajectory
Reacting to the financial statement, the Chief Executive Officer, Sam Darwish, noted that Nigeria is experiencing a stabilised economy. He acknowledged the President Bola Tinubu administration’s efforts to strengthen the naira, boost reserves, and curb bureaucracy.
The naira had appreciated against the dollar during the quarter, averaging N1,523/$1. The Central Bank of Nigeria cut interest rates by 50 basis points to 27%, and inflation also declined to 18%, the lowest in over three years.
The CEO added that IHS Towers remains optimistic about Nigeria’s macroeconomic trajectory, with increased confidence in the Nigerian economy and improved foreign-exchange conditions. The performance was also attributed to over 1,700 lease amendments and more than 220 new collocations during the quarter.
Challenges and Strategic Decisions in the Nigerian Market
Amid the significant revenue contribution from the Nigerian market, the group recorded a revenue loss of about $8 million. This was attributed to MTN Nigeria-related site churn, which involved 510 vacated tenants and 980 lease amendments.
IHS Towers has directed T2Mobile (formerly 9mobile) to quit 2,576 tower sites following an agreement review. The directive, which commenced in the third quarter of 2025, comes as a major blow to the telecoms company’s rebranding process.
IHS Towers explained its decision to cut ties with T2Mobile and requested clearance for parts of its long-standing debt. The company described the telecoms company as its smallest Key Customer in Nigeria.
The development significantly piles pressure on T2Mobile, which has been positioning itself for a dramatic return with key deals. Since its Etisalat days, the company has struggled with debt, a decline in its subscriber base, and a loss of both market and investor trust.