IHS Towers ($IHS), recognized as the fourth-largest independent tower company globally, has recently terminated the employment of over 100 staff members due to the adverse effects of currency devaluation in Nigeria, its primary market, which has significantly impacted its profitability. A source familiar with the situation informed TechCabal that the layoffs spanned multiple departments, predominantly affecting senior personnel and the network surveillance division.

Many of the senior employees impacted by this decision had dedicated approximately ten years to IHS Towers and were provided with "substantial" severance packages, according to the same source. The company clarified that the layoffs were not a result of underperformance but were instead a response to economic conditions.

IHS Towers has not yet provided a response to inquiries for comments.

Since 2022, the company has encountered mounting pressure from investors regarding its disappointing financial results. In the fourth quarter of 2023, IHS Towers reported a loss of $409 million, attributed to revenue reductions and foreign exchange losses stemming from USD loans, following the currency devaluation in Nigeria.

Currently employing 1,600 individuals, IHS Towers recorded a staggering $1.9 billion loss in 2023, marking a 304% increase compared to the losses of the previous year. Its market capitalization has diminished to $1.3 billion, reflecting a $6 billion decrease since 2021.

Although its share price experienced a slight recovery in August, rising to $3.56 from $2.98 in July, it remains significantly lower than the peak of $21 reached in 2021.

IHS Towers manages over 40,000 towers across Africa, representing approximately 25% of the continent's total tower infrastructure, which it leases to telecommunications companies such as MTN and Airtel. This infrastructure is vital for advancing Africa's digital economy, as it underpins internet connectivity.

Nevertheless, escalating fuel prices, maintenance expenses, inflation, and foreign exchange fluctuations in Nigeria—responsible for more than half of IHS's sales and revenue—pose substantial risks to the business.

In the first quarter of 2024, the company incurred $88.8 million in power expenses, marking its largest operational cost.

A shareholder remarked in a letter dated June 2023, "Last year, the company allocated over $1.5 billion in cash for investment activities; however, the details regarding these investing activities in the company's published cash flow statement lack substantial explanation."

Gimba Mohammed, the director of government and external relations at HIS Towers, stated during a conference in August that the company incurred expenses exceeding ₦14 billion to repair fibre cuts from 2022 to 2023.