IHS Holding has reported another strong quarter, with its Nigerian operations delivering a substantial $268 million in revenue between July and September 2025. The figure, disclosed in the company’s Q3 2025 earnings report and investor briefing, underscores Nigeria’s position as the firm’s most valuable market. During the period, Nigeria accounted for nearly 59% of IHS Holding’s total group revenue of $455.1 million.
The company attributed the robust performance to a combination of factors, including higher carrier tariffs approved earlier in the year, continued demand for infrastructure from major mobile operators such as MTN Nigeria and Airtel Africa, and a more stable macroeconomic environment that resulted in a stronger naira. These elements collectively offset certain operational pressures, including site churn associated with MTN Nigeria’s ongoing lease adjustments.
According to the report, revenue from the Nigerian segment rose 11% year-on-year, outpacing the group’s overall 8.3% year-on-year (YoY) growth rate. The quarter also saw notable activity within IHS’s Nigerian portfolio, with the company executing more than 1,700 lease amendments and securing over 220 new colocations. These expansions and upgrades contributed meaningfully to organic revenue growth in the country, which stood at 5% despite the drag from MTN-related churn.
The churn—primarily driven by MTN vacating 510 tenant sites and modifying terms on 980 leases—resulted in an estimated $8 million revenue impact. Still, IHS management emphasized that the issue was temporary and tied to the renegotiation and renewal of long-term master lease agreements, which have now been extended for an additional 8 to 9 years. CEO Sam Darwish described the reset as a strategic move that strengthens long-term visibility for both parties.
From a profitability standpoint, Nigeria delivered $170 million in segment-adjusted EBITDA for the quarter, representing a 7% increase from the prior year. However, EBITDA margin compressed by 230 basis points to 63.3%. The company linked the margin decline to higher electricity and diesel costs, inflation-related adjustments, and additional expenses following revised agreements with telecom operator 9mobile. Despite these cost pressures, management reaffirmed its confidence in the Nigerian market, highlighting the country’s improving economic fundamentals and stable regulatory landscape.
Macroeconomic data during the period supported the company’s optimism. The naira appreciated notably, averaging N1,523 per dollar across the quarter and currently trending around N1,440 per dollar. Inflation declined to 18%, marking its lowest point in more than three years, while GDP growth showed resilience on both quarterly and yearly comparisons. The Central Bank of Nigeria further bolstered sentiment by cutting interest rates by 50 basis points to 27%, signaling that earlier tightening measures had begun to yield positive results.
Darwish applauded the broader economic turnaround, stating that “Nigeria is firing on all cylinders,” and credited ongoing government reforms aimed at boosting foreign reserves, enhancing currency stability, and reducing bureaucratic hurdles. These improvements, he said, have strengthened investor confidence and created a more supportive backdrop for infrastructure operators like IHS.
Telecom operators—the backbone of IHS’s revenue base—also delivered strong quarterly results. MTN Nigeria posted a 63% revenue surge and reported an EBITDA margin of 53%, while Airtel Nigeria achieved a 56% revenue increase and a 57% EBITDA margin. The performance of both companies was aided by a 50% hike in carrier tariffs, which not only improved their financials but also fueled greater demand for infrastructure services such as tower leasing and network densification.
At the group level, IHS Holding beat market expectations with earnings per share of $0.44, far surpassing the projected $0.11. The earnings surprise triggered a 13.37% rise in pre-market trading, lifting the stock to $7.63. The group recorded adjusted EBITDA of $261 million and delivered an impressive 81% YoY increase in adjusted levered free cash flow, which rose to $158 million.
Looking ahead, IHS Holding reiterated its commitment to expanding and modernizing its Nigerian asset base. After resolving previous regulatory and shareholder-related tensions with MTN Nigeria, the company appears to be operating with greater clarity and alignment. With renewed long-term agreements, improving macroeconomic conditions, and a stable policy environment, Nigeria remains a central pillar of IHS’s long-term growth strategy.
