By Juliet Umeh
For millions of Nigerians, life has moved online. From transferring money on mobile apps to streaming lectures, attending virtual church services, and hailing rides, the digital economy has become the daily fabric of modern existence. But behind this convenience lies a fragile lifeline, telecom towers humming across the country, powered not by reliable public electricity but by costly diesel generators.
Industry figures show that Nigeria’s over 30,000 base stations gulp an astonishing 40 million litres of diesel every month. The dependence has turned telecom networks into unwilling captives of the country’s energy crisis.
The impact is far-reaching. In the first quarter of 2025, the sector contributed 14.4 percent to Nigeria’s GDP, according to the National Bureau of Statistics. Yet operators warn that soaring diesel prices are eroding their profits, stalling network rollouts, and threatening to pass costs onto consumers.
When towers go dark, Nigeria stalls
Every time a telecom tower falters, it is not just a dropped call. In today’s cashless economy, it could mean a failed payment. With 3.7 billion e-payment transactions processed in Q1 2025, the reliability of telecom networks is inseparable from the reliability of Nigeria’s financial system.
Chief Digital Officer at Lotus Bank, Akinlabi Adegoke, explained: “Keeping telecom networks alive on diesel is expensive, and those costs ripple through to digital banking services.
“Every Naira spent on powering base stations is a cost that eventually trickles down to customers, whether through transaction fees or service interruptions.”
The ordinary Nigerian feels it in small but sharp ways, an interrupted transfer at a supermarket checkout, an uncompleted USSD recharge, or a bank alert that takes hours to arrive.
Dangote refinery: Relief or mirage?
The recent commissioning of the Dangote refinery has raised hopes that local production will reduce diesel costs. But experts remain wary.
One of the telecom analysts said: “If refined products are still pegged to dollar rates, the problem persists,
“Operators may still be forced to push costs to consumers.”
The NCC has begun talks with the Central Bank of Nigeria to stabilize pricing frameworks around telecom energy, calling the issue a matter of national security.
Searching for a renewable escape
To break the cycle, some believe Nigeria’s telecom industry must leapfrog into renewable energy.
Prof Chiso Ndukwe-Okafor of the Consumer Advocacy and Empowerment Foundation argues that hybrid solar systems and microgrids could transform the sector.
She said: “Diesel is not a future-proof option. With IoT and AI monitoring, solar solutions today are efficient, cost-effective, and sustainable. The upfront costs may seem high, but the return on investment comes within a few years, alongside job creation and reduced forex pressure.”
Her position resonates with a growing sentiment that energy resilience for telecoms is not just an industry problem but a national development question.
The bigger picture
As the government rallies citizens to embrace digital services, whether in health, education, or commerce, the irony is clear: the very foundation of that vision is being quietly eroded by a power crisis that refuses to go away.
For now, operators continue to juggle the costs, regulators weigh tariff reviews, and consumers endure service glitches. But the choice before Nigeria is stark: either build a telecom energy strategy fit for the future or risk watching its digital ambitions unravel one blackout at a time.
