A remarkable $268 million in revenue was generated by IHS Nigeria in just three months, and it's a story that deserves to be told. This achievement, which accounted for nearly 60% of IHS Holding's total revenue, is a testament to the power of a strong naira and increased carrier tariffs. But here's where it gets controversial: this success story is set against a backdrop of ongoing site churn related to MTN Nigeria. Despite this challenge, IHS Holding's Nigerian segment still managed an impressive 11% year-on-year revenue increase, contributing significantly to the company's overall growth.
The data speaks volumes. IHS Holding's Q3 2025 earnings report reveals a total revenue of $455.1 million, with Nigeria taking the lead as the company's top revenue generator. This market dominance is even more remarkable when you consider the overall group's 8.3% growth rate, which Nigeria surpassed with an 11% increase.
But how did they do it? Well, it's a combination of factors. Over 1,700 lease amendments and more than 220 new colocations during the quarter certainly helped. Even with a revenue loss of around $8 million due to MTN Nigeria-related site churn, organic growth in Nigeria still stood at a healthy 5% YoY. Adjusted EBITDA in the country also increased by 7% year-on-year, reaching $170 million.
However, there's a catch. The EBITDA margin took a hit, declining by 230 basis points to 63.3%. This was primarily due to increased energy and administrative costs, including higher diesel and electricity expenses, inflation-related adjustments, and expenses related to Nine Mobile's updated agreements.
On a broader scale, IHS Holding's group-level performance was equally impressive. Earnings per share came in at $0.44, significantly above the forecasted $0.11, leading to a surge in pre-market stock price. Adjusted EBITDA for the group reached $261 million, and adjusted levered free cash flow saw an impressive 81% year-on-year increase to $158 million.
So, what's driving this success? Nigeria's improving macroeconomic conditions have played a significant role. The naira's appreciation against the dollar, currently averaging N1,440/$1, has provided a positive FX tailwind for IHS. Inflation has also decreased to 18%, the lowest in three years, while GDP growth continues both year-on-year and quarter-on-quarter. The Central Bank of Nigeria's decision to cut interest rates by 50 basis points to 27% is a further sign of progress.
CEO Sam Darwish has praised Nigeria's economic stabilization, describing it as a period of strong performance. He has also acknowledged the administration's efforts to boost reserves, strengthen the currency, and streamline bureaucracy, which have contributed to IHS's confidence in the Nigerian market.
And it's not just IHS that's thriving. Mobile network operators, IHS's primary clients, have also delivered strong results in Q3. MTN Nigeria reported a massive 63% increase in revenue, with an impressive EBITDA margin of 53%. Airtel Nigeria saw similar success, with revenue growth of 56% and a 57% margin. These gains were driven by a 50% carrier tariff increase, which has led to increased financial and infrastructure demand from tower providers like IHS.
While the MTN Nigeria churn impacted short-term revenue, it's important to note that this was a one-time event tied to the renewal of long-term master lease agreements. IHS remains well-positioned as both MTN and Airtel continue to invest in network densification and quality of service.
IHS Holding Ltd, a prominent independent tower company in emerging markets, has found a strong foothold in Nigeria. Despite facing regulatory and operational challenges in recent years, including disputes with MTN Nigeria, the company appears to be on a more stable path in 2025. Improved government-business relations and positive macroeconomic conditions have contributed to this turnaround.
For a deeper dive into Nigeria's telecom sector and macroeconomic reforms, check out the related coverage on Nairametrics.
And now, we want to hear from you. What are your thoughts on IHS Holding's performance in Nigeria? Do you think the company's strategy is sustainable in the long run? Share your insights and join the discussion in the comments below!
