Nigeria’s telecommunications industry is battling mounting operational challenges as soaring diesel prices continue to put enormous pressure on network operators across the country.
With unreliable public electricity supply forcing telecom companies to rely heavily on generators, operators are now spending hundreds of millions of dollars yearly just to keep network infrastructure running.
Industry figures show that telecom operators consume more than 76 million litres of diesel every month to power over 40,000 telecom towers nationwide.
By early 2024, monthly diesel spending had climbed to about N85 billion, driven largely by the removal of fuel subsidies, the depreciation of the naira, and rising global crude oil prices.
For many operators, energy expenses now account for nearly 70 per cent of operational costs, creating serious financial strain.
Analysts warn that the increasing cost of maintaining telecom infrastructure could threaten service quality and slow the rollout of modern technologies such as 5G networks. In some areas, shortages in diesel supply have already led to network disruptions and poor connectivity.
The situation has also intensified calls within the industry for an upward review of call and data tariffs. Stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argue that current pricing structures no longer reflect the realities of operating costs in the sector.
At the same time, telecom companies are increasingly turning to renewable and alternative energy solutions to reduce dependence on diesel. Hybrid power systems that combine solar energy, batteries, and grid electricity are becoming a preferred option for operators seeking long-term cost reduction and operational stability.
Among the companies embracing this transition is Globacom, popularly known as Glo. The company has introduced a hybrid energy strategy aimed at reducing reliance on diesel-powered generators across its network sites nationwide.
The initiative involves integrating solar panels, battery systems, and available grid electricity into both existing and newly deployed telecom sites. According to industry observers, the move has already contributed to a noticeable decline in diesel consumption and operating expenses.
Beyond cost reduction, the transition is also expected to improve sustainability by lowering carbon emissions in line with global environmental standards. It further addresses the recurring logistical difficulties involved in transporting diesel to remote telecom locations, many of which are difficult to access and vulnerable to supply delays that often lead to downtime.
Telecommunications analysts believe that although renewable energy deployment may require significant initial investment, the long-term benefits outweigh the costs. They argue that improved power reliability will free up resources for network maintenance and expansion while reducing the risk of service deterioration caused by excessive operational expenses.
However, the sector continues to grapple with another major threat vandalism and theft of telecom infrastructure. ALTON recently raised concerns over increasing attacks on critical telecom equipment, including fibre optic cables, power cables, diesel generators, batteries, rectifiers, feeder cables, and solar panels.
According to the association, these assets are essential to Nigeria’s communications systems, digital economy, and security architecture, making their destruction a serious national concern.
The Nigerian Communications Commission also disclosed that more than 50,000 incidents involving damage to telecom infrastructure have been recorded nationwide within the last five years.
The Commission noted that vandalism has contributed significantly to poor network performance, including dropped calls, failed SMS deliveries, unstable internet connections, and interrupted data services experienced by subscribers across the country.
To tackle these security concerns, Glo has strengthened protective measures around its infrastructure through a mix of technology-driven monitoring systems and physical security arrangements.
The company now deploys AI-powered security systems to monitor critical network assets, especially in the South-West region. Additional measures include surveillance operations, reinforced installations, and dedicated security personnel to guard telecom sites against theft of generators, batteries, and fuel.
Glo also uses real-time infrastructure monitoring and geospatial mapping technologies to identify vulnerable locations and prevent fibre cable damage during road construction activities.
Industry experts say the company’s hybrid energy and infrastructure protection strategies could significantly improve service reliability while reducing operational expenses over time. They believe such investments will help ensure uninterrupted network operations and deliver better customer experience for subscribers nationwide.
