Energy Crisis Threatens Nigeria’s Telecom Boom

Written By: Flipbz.org

Nigeria’s telecommunications industry is grappling with a persistent energy crisis that accounts for 70% of network downtime, severely impacting service quality and digital progress. Despite challenges like vandalism, site closures, fiber cuts, and high Right of Way (RoW) charges, the lack of reliable grid power remains the sector’s most pressing issue.

At the GITEX Nigeria 2025 conference, MTN Nigeria’s Chief Operating Officer, Ayham Mousa, revealed that telecom operators allocate up to 30% of their operating budgets to power over 40,000 base transceiver stations (BTS) nationwide. “Energy shortages directly undermine network availability,” Mousa said. “When customers can’t make calls or communicate, it’s not just an inconvenience—it’s a safety concern.” He noted that 70% of service disruptions stem from power issues, compounded by frequent fiber cuts and vandalism. In the past six months alone, MTN recorded 5,700 fiber cuts across Nigeria’s 40,000 kilometers of fiber infrastructure.

Mousa called for greater public awareness to protect telecom infrastructure and urged harmonization of RoW charges to enable network expansion to underserved areas. “Collaboration is key to ensuring connectivity reaches every corner of the country,” he added.

Echoing these concerns, Dr. Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), highlighted the industry’s heavy reliance on diesel, with monthly consumption exceeding 40 million liters. Speaking at an industry dialogue, Maida expressed hope that the operational Dangote refinery could ease costs but warned that over-dependence on diesel threatens the sector’s sustainability. “Without diversifying energy sources, we risk stalling Nigeria’s gains in broadband penetration and digital inclusion,” he said.

Eghosa Urhoghide, Managing Director of Edo State’s ICT Agency, shared insights on mitigating fiber cuts through community engagement and infrastructure investment. “In Edo, we’ve laid 1,500 kilometers of fiber ducts, and by involving communities, we’ve fostered a sense of ownership that helps protect infrastructure,” he explained. Urhoghide also advocated for the federal government to revive the Dig Once Policy to curb vandalism and streamline fiber deployment. He noted that state-led duct investments can reduce operators’ capital expenditure by up to 80%, making expansion more viable.

At the same GITEX conference, MTN Nigeria’s CEO, Dr. Karl Toriola, raised alarms about a looming data center capacity shortfall as artificial intelligence adoption surges. He estimated a 90-megawatt gap, underscoring the urgent need for infrastructure upgrades to support Nigeria’s digital economy.

As the telecom sector drives advancements in mobile money and digital inclusion, stakeholders agree that resolving the energy crisis and protecting infrastructure are critical to sustaining growth. Collaborative efforts between government, operators, and communities will be essential to keep Nigeria connected.