IHS Holding Limited has secured a new N100 billion revolving credit facility in Nigeria as the telecom tower company battles rising tenant losses linked to network restructuring and cost-cutting measures by mobile operators.
- +IHS secures N100bn credit facility amid 2,491 Nigeria tenant losses
The company disclosed in its first-quarter 2026 earnings report that the new facility includes an option to increase the amount to N200 billion.
The company disclosed in its first-quarter 2026 earnings report that the new facility includes an option to increase the amount to N200 billion. The loan matures in 2029 and remained undrawn as of May 2026.
The financing arrangement comes at a time when IHS is facing growing pressure in its largest market after losing 2,491 tenants in Nigeria during the quarter.
The company said the decline reflected continued renegotiation of tower agreements by telecom operators as they reduce infrastructure costs and optimise network footprints.
Nigeria remained IHS’s biggest market during the quarter, contributing $285 million in revenue, up five percent year-on-year.
However, the company said the revenue growth masked weakness in underlying operations as organic revenue declined due to lower earnings from foreign exchange reset clauses and diesel price indexation agreements in customer contracts.
IHS said one of the biggest contributors to the tenant decline was telecom operator T2, formerly known as 9mobile.
According to the company, T2 agreed to vacate some IHS tower sites under a structured settlement arrangement designed to help the operator repay overdue obligations through July 2027.
The company also disclosed that approximately 1,050 sites previously occupied by MTN Nigeria were vacated under earlier contract renewal and extension agreements signed in 2024.
The exits added to pressure on tenant growth in the Nigerian telecom infrastructure market.
Despite the customer losses, IHS said telecom operators continued investing in network upgrades and data capacity expansion.
Lease amendments in Nigeria increased by 4,240 during the quarter, reflecting ongoing demand for additional telecom infrastructure services and network optimisation.
The Nigerian business still remained highly profitable for the group. Segment EBITDA rose two percent to $182.6 million, while EBITDA margin stood at 64.1 percent.
The company also benefited from improved exchange-rate conditions during the quarter after prolonged currency volatility in Nigeria over the past two years.
IHS said the naira appreciated by 4.6 percent against the U.S. dollar during the first quarter of 2026, helping boost reported earnings.
The stronger currency added $26.7 million to group revenue and contributed $16.9 million to adjusted EBITDA.
The company also recorded unrealised foreign exchange gains of $80.3 million on dollar-denominated intercompany loans connected to its Nigerian operations.
Across the group, total tenants declined by 4,752 year-on-year to 54,854, while total tower count dropped by 1,571 to 37,641 towers.
The company said the reduction was largely linked to the disposal of its Rwanda business in October 2025, which removed more than 3,000 tenants from the group’s operations.
Outside Nigeria, the Sub-Saharan Africa segment also recorded customer churn tied partly to ZedMobile in Zambia.
Still, the wider business delivered stronger financial results.
Profit after tax rose sharply to $77 million in the first quarter from $30.7 million a year earlier, while adjusted EBITDA climbed 6.4 percent to $268.7 million.
Cash generated from operations increased 13.2 percent to $244.9 million, supported by lower financing costs and stronger cash flow generation.
The company’s balance sheet also improved, with consolidated net leverage reducing to 2.9x from 3.4x a year earlier.
Cash and cash equivalents rose to $940.5 million at the end of March.
Sam Darwish, chairman and chief executive officer said the company maintained commercial momentum despite customer exits and operational restructuring across parts of the business.
The company is currently undergoing major strategic changes ahead of its proposed $6.2 billion acquisition by MTN Group Limited.
IHS is also selling its Latin American tower operations to Macquarie Asset Management and has completed the sale of its stake in I-Systems to TIM S.A..
Industry analysts say the latest results reflect increasing pressure on telecom tower companies across Africa as operators renegotiate infrastructure agreements, reduce site footprints and focus on lowering operating costs while still investing in data capacity and network quality.
