Rising diesel costs threaten Nigeria’s telecom services as industry shifts toward renewable energy

8 Jul 2025

By Seun Ibiyemi

Nigeria’s telecommunications sector is under growing pressure from skyrocketing diesel prices, with each major operator reportedly spending between ₦5 billion and ₦10 billion monthly to fuel thousands of base stations across the country.

Speaking with Nigerian NewsDirect, Former President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr Tony Izuagbe Emoekpere, cautioned that surging diesel costs and severe logistical difficulties in reaching remote or insecure locations are seriously affecting network performance and operational efficiency.

“Diesel has become one of the most significant cost burdens in our industry,” Emoekpere stated. “The logistics of supplying diesel to base stations are extremely complex. Any disruption quickly leads to service outages, and it is the consumers who suffer through reduced service quality and increased costs.”

Confronted with an unsustainable power model, telecom operators are increasingly adopting alternative energy solutions, particularly solar and gas.

“These technologies are not only more economical over the long term, but they also promote environmental responsibility and provide more reliable service, especially in rural or off-grid areas,” Emoekpere said.

He explained that solar energy delivers a clean and steady power supply with low operational expenses, while gas offers a more efficient alternative to diesel in clustered site deployments.

“This transition is about securing the future of telecom infrastructure, particularly as we adopt 5G and other data-heavy technologies,” he added.

The industry’s move towards renewable energy has been bolstered by a recent partnership between the Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA). The collaboration aims to install renewable energy systems at telecom sites in underserved areas, addressing both connectivity and power supply challenges.

“This type of cooperation is exactly what the industry requires,” said a senior telecom executive. “Access to affordable, stable power from renewable sources reduces operational costs and supports network expansion into regions previously considered economically unfeasible.”

Looking ahead, Emoekpere underlined that sustained progress in Nigeria’s telecom industry relies on a balanced mix of infrastructure development, enabling government policies, and stronger collaboration across the sector.

“If we get the fundamentals right, policy, power, infrastructure, and partnerships, the future of telecommunications in Nigeria is not only promising, it’s potentially transformative,” he concluded.