Joy Agwunobi
Nigeria’s telecommunications industry, often celebrated as the backbone of the nation’s digital economy, is increasingly under strain from an escalating energy crisis that threatens to reverse years of progress in connectivity, financial inclusion, and innovation.
The sector, which contributed 14.4 percent to Nigeria’s gross domestic product (GDP) in the first quarter of 2025 according to the National Bureau of Statistics (NBS), has long contended with hurdles such as vandalism, multiple taxation, prohibitive Right of Way (RoW) charges, and incessant fibre cuts. But operators now warn that the most persistent and destabilising challenge is the rising cost of powering more than 30,000 base stations nationwide.
Energy at the heart of telecoms reliability
Speaking at the GITEX Nigeria 2025 conference and exhibition, Ayham Mousa, chief operating officer of MTN Nigeria, said the availability of power is central to network stability. He noted that between 20 and 30 percent of operators’ total expenses are tied to ensuring electricity supply across sites, while about 70 percent of network downtime is directly linked to energy shortages.
“No operator jokes with energy supply to base stations because it determines the quality of service,” Mousa explained,adding that “Customers experience unavailability when they can’t make calls or connect during emergencies. That’s not just an inconvenience; it’s a safety issue.”
The COO further disclosed that fibre infrastructure remains another critical challenge for the industry. Despite Nigeria’s estimated 40,000 kilometres of fibre, expansion is hampered by high and inconsistent RoW charges across states. He stressed that harmonisation of charges would enable operators to extend telecom services to underserved and remote communities.
Mousa also highlighted the extent of disruption operators face, noting that the combined effects of fibre cuts, vandalism, and unreliable power supply continue to weaken network resilience. “For MTN alone, in the last six months, we have recorded 5,700 fibre cuts. This is in addition to power challenges and vandalism. We need collective efforts, including citizen sensitisation, to protect telecom infrastructure,” he said.
Such recurring damage not only interrupts service delivery but also drives up the costs of repairs and network restoration. For operators, it means diverting significant resources to fix infrastructure almost as quickly as it is destroyed.
Compounding these challenges is the heavy financial burden of sustaining power at base stations. The cost implications of maintaining stable services remain steep, with operators relying predominantly on diesel generators to ensure connectivity, an unsustainable model in the face of volatile fuel prices and mounting operational costs.
NCC raises alarm over diesel dependence
Similarly, at a recent industry dialogue, Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), underscored the scale of the crisis. According to him, telecom operators consume more than 40 million litres of diesel every month to keep their networks stable.
“With the Dangote refinery now on-stream, we expect some relief,” Maida said. “But if we don’t diversify beyond diesel, the sustainability of the sector remains at risk.”
Both industry leaders and regulators share concerns that without urgent intervention, the crisis could undermine Nigeria’s digital progress. Broadband penetration, mobile money adoption, and digital inclusion—areas where the country has made significant strides—are now at risk of stagnation or reversal.
The rising energy costs, frequent fibre disruptions, and infrastructural vandalism compound a situation that already leaves operators struggling to balance affordability for consumers with the cost of maintaining robust networks.
As Nigeria seeks to deepen its digital economy and leverage technology for growth, the telecom sector’s energy burden stands as a looming obstacle. Stakeholders warn that without coordinated solutions—ranging from harmonised RoW charges and stronger infrastructure protection to energy diversification—the backbone of Nigeria’s digital economy may begin to buckle under pressure.
