IHS Towers, the world’s fourth-largest independent tower company, has laid off over 100 employees due to currency devaluation in Nigeria, its largest market. The layoffs, which affected senior employees and the network surveillance team, were attributed to economic pressures rather than underperformance. “[The company said] it was not because of underperformance but because of the economy,” a person with direct knowledge of the business said.
The company has faced financial struggles since 2022, with a $1.9 billion loss in 2023 and a market capitalization decline of $6 billion since 2021. Rising fuel prices, maintenance costs, inflation, and FX volatility in Nigeria have threatened the business. In the first quarter of 2024, power costs accounted for $88.8 million, the largest operating expense.
Gimba Mohammed, director of government and external relations, revealed that fibre cuts cost the business over ₦14 billion between 2022 and 2023. A shareholder expressed concerns about the company’s investing activities, stating, “The company used more than $1.5 billion in cash last year for investing activities, but the line items on the company’s published statement of cash flows for such investing activities are not explained in any meaningful way.”
IHS Towers operates over 40,000 towers in Africa, providing crucial infrastructure for internet connectivity. Despite the challenges, the company remains essential for Africa’s digital economy plans.
