The rising hum of digital activity in Nigeria is powered by more than just innovation—with the NCC set to promote solar for telecoms operation ease, it’s also fuelled by diesel, and lots of it.
As data consumption surges and connectivity spreads, telecom operators are grappling with soaring energy costs and unreliable power supply.
Now, the Nigerian Communications Commission (NCC) is rewriting the playbook.
Rising Costs From Poor Grid Supply
Currently, over 34,000 base stations run largely on diesel, as the national grid supplies less than 5,000 MW—far below the country’s 200,000 MW energy needs.
Consequently, telecom operators burn more than 40 million litres of diesel monthly, spending over $350 million (₦534.16 billion) each year, according to the State of Africa’s Infrastructure Report 2025.
Energy Costs Hit Operators Hard
Highlighting the burden, ALTON President, Gbenga Adebayo, said: “High energy cost remains the industry’s biggest constraint”.
Diesel alone takes up about 35% of telcos’ operating expenses.
Meanwhile, internet usage keeps climbing, hitting nearly one million terabytes in April 2025.
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Because African networks remain inefficient, operators consume 0.24 kWh per GB—far higher than the global average of 0.17 kWh.
NCC To Cut Telecoms Energy Costs
To tackle this, the NCC-REA committee is now developing a strategy to integrate solar power into telecom networks.
The team plans to align funding, share geospatial data, and track social and economic outcomes through clear metrics.
Encouragingly, GSMA reports that renewables can lower telecom energy costs by 30–50%.
In response, Airtel and MTN have started adopting hybrid power solutions and renegotiating tower contracts to boost efficiency.
Although challenges like theft and limited 24-hour backup persist, Nigeria’s strong solar potential offers a clear path toward lower costs and wider connectivity.
