By David Akinmola
A new industry report has revealed that Nigeria’s telecommunications sector spends a staggering $350 million annually on diesel to power its network infrastructure, igniting fresh conversations around energy sustainability, cost efficiency, and climate responsibility within the industry.
The report, published by the Association of Licensed Telecom Operators of Nigeria (ALTON) in partnership with the Renewable Energy Association of Nigeria (REAN), highlights the growing operational burden posed by diesel dependence, particularly in light of Nigeria’s persistent power supply challenges.
According to the findings, over 35,000 telecom base stations across the country rely primarily on diesel generators for 24/7 operations due to the unreliable national grid. With diesel prices fluctuating amid global oil market dynamics and local supply chain disruptions, telecom operators face rising overheads that threaten long-term profitability and service quality.
“This level of spending is unsustainable,” said Engr. Gbenga Adebayo, Chairman of ALTON. “We’re not just talking about the financial cost, but also the environmental impact. It’s time for serious investment in renewable energy solutions.”
Industry insiders say the diesel reliance has not only pushed up operating costs—translating into higher tariffs for consumers—but also increased carbon emissions, raising red flags with environmental groups and climate policy advocates.
The report advocates for an accelerated transition to cleaner, decentralized energy sources, such as solar hybrid systems and battery storage technologies. It estimates that up to 40% of current diesel usage in telecom infrastructure could be replaced with solar alternatives over the next five years, saving the industry close to $140 million annually while reducing carbon emissions by over 500,000 metric tons.
Several major operators, including MTN Nigeria and Airtel, have already initiated pilot programs deploying solar-powered base stations in rural areas. Experts say scaling such initiatives requires policy support, investment incentives, and robust partnerships with clean energy providers.
“Telecom is the backbone of Nigeria’s digital economy. Making it greener is not just an environmental imperative, but an economic one,” said Toyin Adeola, a clean energy consultant. “The government must support this transition through favorable tax regimes, low-interest financing, and infrastructure grants.”
With Nigeria aiming to cut greenhouse gas emissions by 20% unconditionally and 47% with international support by 2030 under the Paris Agreement, reducing diesel use in telecom operations could be a major step toward that goal.
As the conversation gains momentum, stakeholders hope this report will serve as a catalyst for industry-wide action and cross-sector collaboration. The road to a greener telecom sector may be long, but with the right policies and partnerships, experts believe Nigeria can lead Africa’s transition to sustainable connectivity.
