IHS Towers, a leading global provider of shared communications infrastructure, announced its fourth quarter 2025 revenue from Nigeria reached $269.1 million. This marks a 4% year-over-year increase from the $258.9 million recorded in the same period last year.
Despite overall revenue growth, changes in customer agreements and site exits impacted revenue growth, particularly the loss of sites related to MTN Nigeria. Notably, in Q3 2024, MTN Nigeria had agreed to exit 1,050 sites as part of a renewed and extended contract agreement.
Contrasting the revenue growth trend, IHS Towers reported a $18.6 million decline in organic revenue from its core business operations. The company attributed this to reduced revenue from FX resets and increased diesel prices.
However, the decline in organic revenue was partially offset by favorable foreign exchange movements. In Q4 2025, the average exchange rate was NGN 1,453 to USD 1, compared to NGN 1,629 to USD 1 in Q4 2024, indicating a more favorable currency shift.
Adjusted EBITDA for the quarter stood at $169.7 million, a 9.5% increase year-over-year, with a margin of 63.0%. This strong performance directly reflects the revenue growth in IHS Towers' Nigerian operations.
Capital expenditure increased by 19.3% to $40.2 million this quarter. This was primarily driven by an increase in maintenance capex ($5.2 million) and other capex ($7.9 million). However, fiber capex ($5.7 million) and new site capex ($0.8 million) both saw decreases.
IHS Towers is a leading independent tower company in emerging markets, with Nigeria being one of its most significant markets. The company operates over 16,000 towers in the country, supporting the daily operations of Nigerian telecom operators such as MTN and Airtel.
Tower Site Tenant Count Changes
IHS Towers experienced a decrease in tower site tenants, which significantly impacted revenue growth.
Despite challenges, the IHS Nigeria market still recorded some growth.
According to the report, the company's tower leasing business added 807 tenants. Of these, 763 tenants (tower leasing) came from co-locations (i.e., multiple companies sharing existing towers), and 44 came from new sites.
While IHS Towers saw an overall net loss in tenants in Nigeria, the number of modified leasing agreements significantly increased by 2,928. This indicates that existing tenants are increasing their services, such as additional equipment, power, or space, despite the overall decline in tenant numbers.
IHS Towers' Overall Q4 2025 Performance
The company's consolidated revenue from continuing operations increased by 1.2% year-over-year to $397.8 million, largely driven by its Nigerian operations. Additionally, adjusted EBITDA grew by 1.4% to $249.8 million.
Commenting on the results, Sam Darwish, Chairman and CEO of IHS Towers, stated that the full-year performance demonstrated the company's disciplined execution, continued commercial momentum, and the resilience of its business model.