IHS Nigeria generated $268 million in revenue in the third quarter of 2025, accounting for nearly 59% of IHS Holding’s total revenue of $455 million.
This is according to the company’s Q3 2025 earnings report and investor presentation.
The growth was driven by increased carrier tariffs, a stronger naira, and robust demand from mobile network operators like MTN and Airtel, despite ongoing site churn related to MTN Nigeria.
The Nigerian segment saw an 11% year-on-year increase in revenue, contributing significantly to IHS Holding’s overall 8.3% YoY revenue growth.
Nigeria also delivered $170 million in segment-adjusted EBITDA, up 7% from the prior year, although margins slightly declined due to increased energy and administrative costs.
Management also said it remains optimistic about Nigeria’s macroeconomic trajectory, citing improved FX conditions and a stable regulatory environment.
What the data is saying
IHS Holding reported total Q3 2025 revenue of $455.1 million, with the Nigerian segment contributing $268 million, making it the company’s largest revenue-generating market.
- This figure represents an 11% year-on-year growth in Nigeria, compared to the overall group’s 8.3% growth.
- The performance was bolstered by over 1,700 lease amendments and more than 220 new colocations during the quarter.
- Despite a revenue loss of about $8 million due to MTN Nigeria-related site churn, involving 510 vacated tenants and 980 lease amendments, organic growth in Nigeria stood at 5% YoY.
- Adjusted EBITDA in the country came in at $170 million, reflecting a 7% increase year-on-year.
- However, the EBITDA margin declined by 230 basis points to 63.3% due to higher diesel and electricity costs, inflation-related cost adjustments, and expenses tied to Nine Mobile’s updated agreements.
On a group level, IHS Holding posted earnings per share of $0.44, well above the forecasted $0.11, resulting in a 13.37% surge in pre-market stock price to $7.63.
Adjusted EBITDA for the group stood at $261 million, while adjusted levered free cash flow surged 81% year-on-year to $158 million.
Additional insights and context
Nigeria’s improving macroeconomic conditions have supported IHS’s performance. The naira appreciated against the dollar during the quarter, averaging N1,523/$1, which translated into positive FX tailwinds for IHS. It is currently N1,440/$1 on average.
Inflation also declined to 18%, the lowest in over three years, while GDP growth continued both year-on-year and quarter-on-quarter.
The Central Bank of Nigeria also cut interest rates by 50 basis points to 27%, signaling that monetary policy tightening is beginning to yield results.
CEO Sam Darwish highlighted the country’s economic stabilization, noting that “Nigeria is firing on all cylinders at the moment,” and praising the administration’s efforts to boost reserves, strengthen the currency, and streamline bureaucracy.
These developments, he said, have reinforced IHS’s confidence in the Nigerian market.
According to HIS, mobile network operators, the primary clients of IHS, also delivered strong results in Q3. MTN Nigeria reported a 63% increase in revenue and now boasts an EBITDA margin of 53%, while Airtel Nigeria saw revenue grow 56% with a 57% margin.
These gains followed the implementation of a 50% carrier tariff increase, which helped drive stronger financials and infrastructure demand from tower providers like IHS.
While the MTN Nigeria churn impacted short-term revenue, Darwish described it as a one-time event tied to the renewal of long-term master lease agreements (MLAs), now extended for 8–9 more years. He emphasized that IHS remains well-positioned as both MTN and Airtel continue to invest in network densification and quality of service.
What you should know
IHS Holding Ltd is a prominent independent tower company in emerging markets, and Nigeria is one of its most important geographies.
In Nigeria, IHS has faced regulatory and operational headwinds in recent years, including disputes with MTN Nigeria over shareholding structures and licensing.
However, the company appears to be on firmer footing in 2025, backed by improved government-business relations and positive macroeconomic tailwinds.
For more on Nigeria’s telecom sector and macroeconomic reforms, see related coverage on Nairametrics:
- MTN Nigeria reports 63% revenue growth amid tariff hikes
- CBN cuts interest rates to 27% as inflation continues to ease
- Naira appreciation boosts investor confidence in Q3 2025
