Nigeria is burning through N696 billion a year on diesel to power its roughly 42,000 telecom towers, even as solar and hybrid systems have stalled at just 20 percent adoption, placing the industry at a critical energy crossroads amid soaring costs and growing reliability concerns, BusinessDay findings revealed.
The country’s telecom networks keep the nation plugged into the digital world, fueling everything from mobile banking to online learning and emerging AI ventures.
But behind the scenes, the relentless need to fuel thousands of base stations with diesel threatens to slow that momentum.
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To break that down, telcos spend around N58 billion monthly, close to N2 billion daily, or more than N29 billion over a typical two-week stretch. The figure comes from industry tallies showing monthly diesel use topping 40 million litres, especially in far-flung rural spots where the national grid either flickers or fails entirely. Even at a cautious N1,450 per litre average for 2025, the numbers add up fast, and discounts from bulk buys only soften the blow so much.
Power already eats up 20 to 30 percent of most operators’ running costs, yet some insiders put diesel’s slice even steeper in tough locations.
Ernest Akinola, who once ran a major telecom outfit and now steers renewable projects at Bboxx Nigeria from his base in the UK, doesn’t mince words. He points out that diesel can gobble up nearly 60 percent of an operator’s expenses. “With towers needing power around the clock and Nigeria sitting at about 42,000 base stations, probably only half the coverage the country really requires, clinging to diesel just doesn’t add up anymore. Switching to solar isn’t optional; it’s essential,” Akinola argues.
He sees the whole sector perched on a knife-edge. “Nigeria’s telecom business faces a make-or-break moment right now. How we handle power for infrastructure will decide whether digital services stay within reach and affordable for tens of millions of people,” he posited.
Stick with the current path, and rising inflation, shaky exchange rates, and fuel import headaches could tip the financial scales disastrously, he warned.
The regulator isn’t sitting idle. The Nigerian Communications Commission has ramped up pressure for a cleaner shift, spotlighting solar and other renewables as ways to tame those diesel bills and trim the sector’s carbon footprint.
Drawing on GSMA insights, the NCC notes that going renewable could shave 30 percent to 50 percent off energy expenses while helping meet national climate goals. Some within the commission believe operators could realistically pocket at least 20 percent savings from the move.
In June 2025, the NCC teamed up with the Rural Electrification Agency to launch a dedicated collaboration committee. Unveiled in Abuja, the group zeroes in on rolling out solar and hybrid setups for telecom sites, especially in remote and underserved zones where hauling diesel is costly and risky.
The effort targets the roughly $350 million (over N500 billion at prevailing rates) operators burn through annually on fuel, aiming to tackle both energy poverty and connectivity shortfalls in one go.
NCC boss Aminu Maida called the alliance game-changing. “This is not just about lighting up a base station, it is about opening doors for a kid to learn online or bringing real opportunities closer to communities,” he said.
The committee plans to blend renewable tech, pool mapping data for smarter placement, sync financing streams, and track broader community benefits.
Beyond that, the NCC is shaping a wider clean-energy roadmap to steer operators toward greener options and green network tweaks. It also keeps championing tower sharing and co-location to cut waste, shrink the number of diesel-only sites, and let more operators tap into shared solar-hybrid setups.
Still, the switch to renewables crawls along. Back in April 2025, only about one in five towers, some 8,000 to 8,400, ran on solar or hybrid power.
The NCC admits the hurdles are real, adding that solar panels and batteries tempt thieves, a problem that is grown acute with reports from groups like the Association of Licensed Telecoms Operators of Nigeria (ALTON), detailing stolen gear resurfacing in markets.
Renewables sometimes struggle to guarantee nonstop backup, so hybrids blending solar, storage, and legacy systems remain the practical bridge.
Where solar has taken hold, geography plays a big role. Northern states in the North-East and North-Central, plus isolated border villages and tough-to-reach hamlets, lean heavily on solar-hybrid because sunlight is plentiful and diesel delivery is either exorbitant or dangerous.
In cities like Lagos and Abuja, trials prioritize trimming bills over solving access. A few forward-thinking setups even turn towers into mini power hubs, feeding nearby homes while keeping telecom gear humming.
Big names are leading the charge. IHS Nigeria’s Project Green poured resources into hybrid upgrades, teaming with outfits like Jaza Energy to install solar at hundreds of locations and drive down emissions.
ATC Nigeria and similar firms keep pace, while Watt Renewable focuses on rural rollouts. ESCOs and equipment makers sweeten the deal with pay-from-savings arrangements that lighten the initial hit.
Proof that the approach works shows up elsewhere in Africa. MTN South Sudan trimmed fuel spending by 30 percent after going solar. Airtel Africa, working with Engie Energy Access, slashed fuel use 58 percent across sites in Zambia and Congo, pocketing millions yearly and avoiding thousands of tonnes of CO₂.
However, significant barriers continue to slow the pace of change. Industry statistics showed that retrofitting a single tower site with solar-hybrid equipment often costs between $25,000 and $40,000, while batteries need to reliably store enough energy for full 24-hour operation in areas with variable sunlight or heavy nighttime loads.
Theft and vandalism of panels, inverters, and batteries remain a serious and widespread threat, driving up insurance costs and forcing operators to add expensive security measures. In conflict-prone or remote regions, simply delivering materials and completing installations becomes logistically daunting and risky. On top of that, securing affordable financing for large-scale rollouts stays challenging, as banks remain cautious about lending against long payback periods in a volatile economic environment.
Market outlooks offer some optimism amid the hurdles. Forecasts indicate that the share of renewable-powered towers could grow at nearly 14 percent annually through 2030, potentially reaching around 26 percent of the total fleet.
Yet, recent data shows diesel and grid-hybrid systems still dominating well over 85 percent of sites, underscoring how entrenched the old model remains. The real-world price of this slow progress appears in mounting service disruptions.
From late 2025 into early 2026, Nigerian telcos faced escalating outages, 118 incidents recorded in December, with roughly half tied directly to power issues, followed by a sharp jump to 238 in January, where energy-related problems again played a major role alongside frequent fibre cuts.
When diesel deliveries are delayed, supplies run dry, or generators fail under strain, entire towers go dark. Calls drop mid-conversation, mobile money transfers stall, students lose access to online classes, and families can’t reach emergency services, ripples that spread far beyond the industry.
This persistent fragility stands in sharp contrast to Nigeria’s broader digital ambitions. Broadband penetration now surpasses 50 percent, mobile subscriptions exceed 109 million, and 21 data centres are actively supporting the ecosystem.
The sector fuels explosive growth in fintech, expanding cloud services, and emerging AI applications, yet its foundational infrastructure remains heavily reliant on fossil fuels, exposed to price swings, supply chain vulnerabilities, and frequent unreliability.
Those in the know view solar as more than savings; it is steadier uptime, cheaper long-run bills, cleaner air, and fresh models like energy-as-a-service.
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Akinola boils it down: stall the shift, and affordability plus reliability for millions hang in the balance.
The reality bites hard. A forward-leaping digital economy still depends four-fifths on diesel, torching nearly N700 billion yearly while solar clings to one tower in five.
The NCC and REA are pressing ahead with partnerships and policies, wrestling openly with theft risks and backup gaps, so the tide is turning. Each blackout hides a billion-naira fuel penalty.
Success depends on whether operators, backed by regulators, can scale solar’s proven wins continent-wide to match Nigeria’s needs. Until that happens, the true price of staying connected will keep pressing down on an industry and a nation determined to embrace the digital future fully.
