The Nigerian telecommunications sector is facing an unprecedented crisis as a dispute between infrastructure provider IHS Towers and petroleum unions threatens to shut down thousands of telecom sites across the country. The conflict, which began with allegations of diesel theft involving companies linked to the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), has escalated into a full-blown blockade of key diesel depots by NOGASA and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG). This action has severely disrupted the supply of diesel, the lifeblood of Nigeria’s telecom infrastructure, particularly in areas with unreliable grid electricity. Over 16,000 telecom towers, forming the backbone of mobile communication for millions of Nigerians, are at imminent risk of going offline, potentially crippling businesses, hindering essential services, and jeopardizing public safety.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON), representing major operators like MTN, Airtel, Globacom, and 9mobile, has expressed grave concern over the situation. While acknowledging the need for due process in resolving disputes, ALTON emphasized the critical nature of telecom infrastructure and the potential for widespread disruption. Designated as Critical National Information Infrastructure under Nigerian law, any deliberate disruption of telecom services carries significant legal repercussions. The association has called on NUPENG and NOGASA to reconsider their actions and engage in constructive dialogue, emphasizing that disputes should be resolved through legal channels rather than actions that jeopardize vital public services.
The current crisis underscores the vulnerability of Nigeria’s digital infrastructure, which remains heavily reliant on diesel generators due to the inadequacy of the national power grid. Telecom operators consume an estimated 40 million liters of diesel monthly, incurring annual expenses exceeding $350 million. This reliance on diesel not only inflates operational costs but also exposes the infrastructure to theft, vandalism, and supply disruptions, as vividly illustrated by the current standoff. The situation is particularly acute in rural and off-grid areas, where power costs are significantly higher, further increasing the financial burden on operators and potentially impacting service affordability and accessibility for underserved communities.
ALTON has appealed to government authorities, including the Office of the National Security Adviser and the Nigerian Communications Commission (NCC), to intervene swiftly and prevent further escalation of the crisis. The association has reiterated its commitment to providing uninterrupted service but cautioned that such disruptions severely hamper their ability to maintain network stability and meet service delivery expectations. While acknowledging the vital role of NUPENG and NOGASA in the energy sector, ALTON urged the unions to act responsibly and avoid actions that could cripple essential national infrastructure. The telecom operators emphasized the need for a swift resolution to safeguard the interests of businesses, individuals, and the overall economy.
The long-term solution to this recurring challenge lies in diversifying the energy sources powering Nigeria’s telecom infrastructure. The current reliance on diesel is not only expensive and environmentally unsustainable but also exposes the sector to volatile fuel prices and supply chain disruptions. Recognizing this, operators are increasingly exploring renewable energy solutions, such as solar power and lithium batteries, to reduce their reliance on diesel. These hybrid solutions offer significant potential for cost savings, estimated at 30-50% of operating expenses, according to the NCC and GSMA. Furthermore, transitioning to renewable energy aligns with global sustainability goals and contributes to reducing the carbon footprint of the telecom sector.
The ongoing dispute between IHS Towers and the petroleum unions serves as a stark reminder of the urgent need for a more robust and resilient energy strategy for Nigeria’s telecom sector. While resolving the immediate crisis remains paramount, the long-term focus must shift towards investing in sustainable energy solutions to ensure the uninterrupted operation of this vital national infrastructure. This will not only protect the sector from future disruptions but also contribute to a more sustainable and economically viable telecom ecosystem, benefiting both operators and consumers alike. The government, regulators, and operators must collaborate to create an enabling environment for renewable energy adoption, ensuring that Nigeria’s digital future is powered by clean, reliable, and affordable energy sources.
