IHS Towers, Africa’s largest independent telecom tower company, saw over 3 million shares traded on the New York Stock Exchange (NYSE) on May 7, its highest single-day volume in nearly two years. The surge in trading activity, accompanied by a 9.7% jump in share price to $5.7, underscores how investor sentiment is shifting in favour of infrastructure enablers as Nigeria’s top telcos rebound from a turbulent stretch.
The spike also has real implications for the future of internet connectivity in Nigeria and across IHS’s other African markets. With Nigeria contributing 58.3% of the company’s total revenue in 2024, and MTN Nigeria and Airtel Nigeria accounting for a combined 57% of that revenue, IHS’s business performance is deeply intertwined with the operational health of these telecom giants. As both telcos return to profitability in 2025 after navigating currency shocks and rising costs in recent years, investor interest in IHS Towers is growing in tandem.
“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 Towers said in a statement to .
IHS Towers’ share price has climbed over 51% year-to-date, outperforming the S&P 500 and the broader tech sector. Starting the year around $4.00, the stock reached $5.94 by May 7, its highest since September 2023.
The company’s Q4 2024 earnings beat analyst expectations with $437.8 million in revenue and $0.73 earnings per share, fueled by strategic lease renewals with MTN and Airtel and a well-executed cost management plan.
“Most analysts price us above the level of our current share price, and we remain confident in our long-term value proposition,” the company said.
IHS’s stable revenue has been key to drawing investor interest. In 2024, the company locked in 72% of its revenue under long-term contracts, reducing risk and offering greater predictability for investors. These long-term agreements with MTN and Airtel assure continued demand for IHS’s towers, particularly as the telcos expand their 4G and 5G networks to support rising data consumption and a surge in new mobile subscribers.
This financial stability matters for internet connectivity because reliable tower infrastructure is the backbone of mobile broadband delivery in emerging markets. The more stable and profitable IHS Towers becomes, the more aggressively it can invest in building more towers and other telecom infrastructure, particularly in underserved rural areas where connectivity gaps remain wide. IHS plans to build 500 new towers in 2025, many of which are expected to support 5G and mobile data traffic in Nigeria.
The spike in IHS Towers’ share trading volume highlights a broader market shift: investors are increasingly valuing infrastructure firms that underpin large-scale digital transformation. As telecom operators prioritise profitability and cost efficiency, many embrace infrastructure-sharing models to reduce capital outlay. In March 2025, MTN Nigeria and Airtel Africa signed a landmark tower-sharing agreement that directly benefits IHS by allowing telcos to expand network coverage without fully funding new tower builds.
Investor sentiment was further boosted by CEO Sam Darwish’s decision to increase his stake in the company, a move widely seen as a strong internal endorsement of IHS’s strategy and long-term growth trajectory. Darwish increased the value of his stake in IHS Towers by $7.75 million over the past month, with his holdings rising from $56.21 million to $64 million by early May 2025, driven by a 13.76% increase in the company’s share price.
Still, IHS remains exposed to considerable risk as a telecom operator, particularly due to its deep operational footprint in Nigeria. The company is vulnerable to currency volatility, regulatory changes, and broader macroeconomic instability. In 2024, the naira’s steep depreciation and revised lease terms with MTN temporarily eroded margins. However, renewed agreements with Airtel Africa in February and MTN Nigeria in August 2024 have introduced more sustainable pricing structures that help cushion against foreign exchange and energy cost volatility. These renegotiations are now supporting margin recovery and enhancing IHS’s long-term financial stability.
Operational challenges also persist. The company acknowledged ongoing issues with site security, vandalism, unauthorized shutdowns, and currency exposure. “As a TowerCo, we continue to face operational challenges, such as those related to site security, sabotage, illegitimate shutdown of sites, and exposure to currency fluctuations, but we are committed to delivering for our customers,” IHS said.
Despite these hurdles, the company’s ability to adapt and secure long-term contracts with anchor tenants like MTN and Airtel appears to be resonating with global investors, which is now reflected in both its share price and trading activity.
