By Telecom companies in Nigeria are increasingly relying on renewable energy sources due to the rising cost of diesel. The cost of powering their networks with diesel has surged to N56.24 billion per month, putting pressure on telecom operators. According to the Association of Licensed Telecommunications Operators of Nigeria (ALTON), diesel now makes up 35% of the telecom sector’s operating expenses.
Because of Nigeria’s unreliable power supply, telecom companies depend heavily on generators to power their operations. It’s estimated that telecom operators use about 40 million litres of diesel each month. Diesel prices jumped by 64.58%, reaching N1,406.05 per litre in August 2024, compared to N854.32 per litre in August 2023, according to the National Bureau of Statistics (NBS).
This price increase has caused telecom companies’ power expenses to rise from N34.17 billion in August 2023 to N56.24 billion in August 2024.
In 2022, the Nigerian Communications Commission (NCC) reported 34,862 towers and 127,294 base stations across the country. Each base station typically has two generators. The telecom sector spent N2.09 trillion on operational costs in 2022, according to the NCC.
ALTON President Gbenga Adebayo confirmed the high diesel consumption, stating, “It will be over that now,” acknowledging that costs have continued to rise.
