IHS Towers, the largest independent telecom tower company in Africa, experienced a dramatic surge in trading activity on the New York Stock Exchange (NYSE) on May 7, 2025. With over 3 million shares exchanged—its highest single-day volume in nearly two years—the event marked a notable shift in investor sentiment. The stock also rose by 9.7% to $5.70, driven by renewed optimism in Africa’s telecom infrastructure sector, particularly as Nigeria’s top operators rebound from recent headwinds.
Nigeria’s Telcos Fuel IHS Towers’ Growth Momentum
Nigeria remains central to IHS’s financial performance, accounting for 58.3% of its total revenue in 2024. Within that market, two telecom giants—MTN Nigeria and Airtel Nigeria—contribute a combined 57% of IHS’s Nigerian revenue. Both firms are now on a recovery path after a period marred by currency depreciation and rising operational costs. Their return to profitability in 2025 is proving to be a strong tailwind for IHS Towers.
The company’s fortunes are closely tied to these operators’ network expansion strategies, particularly in the rollout of 4G and 5G services. “In Nigeria, the NCC’s tariff increase is a positive development for mobile network operators that is expected to unlock investment in communications infrastructure,” IHS said in a statement to TechCabal.
Earnings and Long-Term Contracts Reinforce Market Confidence
IHS Towers has outperformed broader market indices in 2024. Its share price has risen over 51% year-to-date, climbing from around $4.00 at the start of the year to a high of $5.94 by May 7—the stock’s highest since September 2023.
The company’s strong Q4 2024 earnings bolstered this momentum. Revenue came in at $437.8 million, with earnings per share of $0.73, surpassing analyst expectations. Strategic lease renewals with MTN and Airtel, coupled with a disciplined cost management approach, were key contributors.
“We remain confident in our long-term value proposition,” the company stated, highlighting that most analysts value the stock above its current trading level.
Another significant factor attracting investors is revenue predictability. In 2024, 72% of IHS’s revenue was secured through long-term contracts. These agreements offer financial stability and guarantee future demand for tower infrastructure, a critical component as telcos expand their digital services.
Infrastructure Investment and Connectivity Goals
The implications of IHS’s financial health extend beyond investor returns—they’re also critical to the future of internet connectivity in Africa. As the company strengthens its balance sheet, it is better positioned to invest in underserved regions where connectivity remains limited.
In 2025, IHS plans to build 500 new towers, with a focus on supporting 5G rollouts and expanding mobile broadband coverage in Nigeria and other African markets. These investments are expected to play a key role in bridging digital divides and accommodating the continent’s fast-growing demand for mobile data.
The Growing Appeal of Infrastructure-Sharing Models
The sharp increase in IHS Towers’ trading activity also reflects a broader market trend: growing investor appetite for companies that enable digital transformation. As telecom operators prioritize efficiency and cost reduction, infrastructure-sharing has emerged as a preferred model.
In March 2025, MTN Nigeria and Airtel Africa entered into a significant tower-sharing agreement, allowing both firms to expand their networks while minimizing capital expenditures. IHS stands to benefit directly from such partnerships, as shared infrastructure boosts tower utilization and revenue per site.
Leadership Moves Signal Long-Term Commitment
Investor sentiment received an additional boost following CEO Sam Darwish’s recent increase in shareholding. Over the past month, Darwish increased his stake in the company by $7.75 million, taking his total holdings from $56.21 million to $64 million. This move, seen as a strong endorsement of IHS’s strategy, came alongside a 13.76% increase in the company’s stock price.
Risks and Operational Challenges Remain
Despite the positive outlook, IHS Towers is not without its challenges. Its deep operational exposure to Nigeria means it remains vulnerable to macroeconomic instability, currency fluctuations, and regulatory changes.
In 2024, the steep depreciation of the naira and renegotiation of lease terms with MTN temporarily squeezed margins. However, new agreements with Airtel and MTN introduced more resilient pricing models, helping IHS recover from foreign exchange and energy cost pressures.
Operationally, the company continues to face issues related to site security, vandalism, and unauthorized shutdowns. “As a TowerCo, we continue to face operational challenges… but we are committed to delivering for our customers,” IHS stated.
Outlook: Stability and Expansion Drive Investor Optimism
Ultimately, IHS Towers’ ability to secure long-term contracts, adapt to market volatility, and align itself with the strategic goals of Africa’s largest telcos has begun to resonate strongly with investors. The increased trading activity and stock performance in early May may well mark the beginning of a sustained period of growth, both for the company and for the continent’s mobile connectivity landscape.