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NCC, REA move to cut telecom diesel costs with renewable energy deal

by Joy Agwunobi
July 27, 2026
in Technology
NCC seeks fresh capital for digital infrastructure as data consumption jumps 47%

The Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to power telecommunications infrastructure with renewable energy, in a move aimed at reducing operators’ dependence on diesel and accelerating broadband expansion in underserved communities.

The agreement, formalised through a Memorandum of Understanding (MoU) at the NCC–REA Stakeholder Forum in Abuja, will enable telecom base stations to draw electricity from existing and planned renewable energy mini-grids, helping operators reduce operational costs while improving network availability in areas with limited access to grid electricity.

Speaking at the event, Aminu Maida, executive vice chairman of the NCC, represented by Abraham Oshadami, executive commissioner, technical services, said electricity access and digital connectivity must be addressed together to achieve inclusive economic development.

“Reliable electricity and digital connectivity are not two separate development goals. They both share mutually complementary objectives that produce an inclusive and productive economy,” Maida said.

He explained that many communities lacking broadband access are also those without stable electricity, adding that addressing both challenges simultaneously would provide a more sustainable and cost-effective approach to national development.

According to him, the partnership would involve sharing geospatial data between both agencies to identify areas where electrification projects and connectivity deployments overlap.

Under the arrangement, the REA will provide data on existing and planned electrification projects, while the NCC will share information on Universal Service Provision Fund deployments, creating a coordinated map of energy and connectivity gaps.

Maida said the initiative would also explore opportunities for telecom infrastructure, including base stations and fibre repeaters, to utilise power generated from REA-supported off-grid projects.

He noted that the collaboration reflects the changing demands of telecommunications regulation, where expanding connectivity increasingly requires cooperation across sectors such as energy, infrastructure and finance.

Meanwhile, Umar Abdullahi, executive director, technical services at the REA, said high diesel costs had become a major barrier to telecom expansion, particularly in areas beyond the reach of the national electricity grid.

“Nigeria’s digital economy rests on a physical foundation, and that foundation is power,” Abdullahi said.

He explained that many telecom towers currently depend on diesel generators, adding that the cost of powering these sites has affected operators’ ability to economically expand coverage into remote communities.

According to him, renewable energy mini-grids provide a more affordable and predictable alternative because telecom towers offer consistent electricity demand.

“A telecommunications tower is a near-perfect anchor load, steady, 24 hours a day, creditworthy and contractually reliable,” he said.

Abdullahi added that technical teams from both agencies had already identified priority locations where renewable energy assets could be integrated with telecom infrastructure.

He said the initiative had produced a list of potential sites where diesel-powered towers could transition to renewable energy, reducing operating costs while expanding coverage.

Presenting the implementation roadmap, Umar Sani-Abdullahi, special adviser (technical) to the NCC EVC, said both agencies had completed site assessments, created an implementation dashboard and verified the commercial feasibility of the model.

He added that the next phase would focus on pilot projects, monitoring and data standardisation, with the potential for the model to be replicated across other African countries facing similar challenges around energy access and digital connectivity.

Joy Agwunobi
Joy Agwunobi
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