IHS Towers, one of the world’s largest independent owners and operators of shared telecom infrastructure, has reported $268 million in revenue from Nigeria for the third quarter of 2025. This represents a significant portion of its total $455 million revenue for the quarter, nearly 59%.
The growth in Nigeria was fueled by telecom tariff adjustments, a strengthened naira, and increased demand from major mobile network operators such as MTN and Airtel.
Nigeria Drives IHS Towers’ Global Growth
Despite ongoing challenges like telecom site vandalism, Nigeria recorded an 11% year-on-year (YoY) revenue increase, making it a key contributor to the group’s 8.3% YoY overall revenue growth.
Nigeria remains IHS Towers’ single most important market, hosting more than 16,000 telecom base stations that support network coverage nationwide.
EBITDA Performance and Margin Pressure
During the quarter, IHS Towers’ adjusted EBITDA in Nigeria hit $170 million, representing a 7% YoY increase.
However, the EBITDA margin declined by 230 basis points to 63.3%, largely due to:
- Rising operational costs
- Inflation-linked adjustments
- Higher expenses relating to T2Mobile’s (formerly 9mobile) revised agreements
Across the group, adjusted EBITDA reached $261 million, while adjusted levered free cash flow surged 81% YoY to $158 million. Earnings per share came in at $0.44, far surpassing projections of $0.11, which boosted pre-market stock price by 13.37% to $7.63.
CEO Applauds Nigeria’s Improving Economic Climate
IHS Towers’ CEO, Sam Darwish, highlighted the stabilising economic environment in Nigeria. He credited the President Bola Tinubu administration for:
- Strengthening the naira
- Boosting foreign reserves
- Reducing bureaucracy
During Q3 2025, the naira appreciated, averaging N1,523/$1.
The Central Bank of Nigeria (CBN) also cut interest rates by 50 basis points to 27%, while inflation fell to 18%, the lowest level in more than three years.
These improvements, Darwish said, bolstered investor confidence and enhanced foreign-exchange conditions. Operational growth was also aided by over 1,700 lease amendments and more than 220 new collocations during the quarter.
Revenue Loss Linked to MTN Site Churn
Even with strong earnings, the group recorded a revenue loss of about $8 million, attributed to MTN Nigeria-related site churn. This involved:
- 510 vacated tenants
- 980 lease amendments
Despite this setback, the Nigerian market remained highly profitable for the company.
IHS Towers Orders T2Mobile to Quit 2,576 Sites
In a significant development, IHS Towers has directed T2Mobile (formerly 9mobile) to quit 2,576 tower sites following a review of their existing agreement. The action, which started in Q3 2025, marks a major blow to T2Mobile’s rebranding and market recovery efforts.
IHS cited unresolved long-term debt obligations and noted that T2Mobile is its smallest key customer in Nigeria. The directive intensifies pressure on T2Mobile, which has struggled since its Etisalat era with:
- Massive debt
- Shrinking subscriber numbers
- Loss of market and investor confidence
The company has been working to rebuild trust and reposition itself through strategic partnerships, but the tower exit directive poses a significant setback.
Conclusion
IHS Towers’ Q3 2025 performance highlights Nigeria’s critical role in its business growth, despite operational challenges such as site vandalism and customer churn. With macroeconomic conditions improving and demand from major operators rising, Nigeria remains a strategic market for the tower infrastructure giant.
