The Nigerian Communications Commission (NCC) is spearheading a new initiative to promote solar energy adoption within the telecom sector. This move is aimed at reducing the industry’s overreliance on diesel generators, which has become a major cost burden for operators. With the national electricity grid generating less than 5,000 MW—far below the country’s demand of nearly 200,000 MW—telecom companies are forced to depend on expensive alternative sources for power.
According to the Africa Finance Corporation’s 2025 State of Africa’s Infrastructure Report, Nigerian telecom operators consume over 40 million litres of diesel monthly, costing the industry an estimated $350 million annually. Much of this expenditure is directed at powering over 34,000 telecom towers nationwide, many of which operate off-grid. These high energy costs make it even more difficult for telecom companies to invest in rural and underserved areas.
Gbenga Adebayo, president of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), noted that the energy burden makes up around 35 percent of telcos’ operating expenses. He emphasized that had the government fulfilled its earlier commitment to provide 18 hours of daily power supply, the sector would not face such steep costs and logistical challenges.
The rise in energy needs also coincides with the rapid growth of Nigeria’s digital economy. Monthly internet usage surged to nearly one million terabytes in April 2025, a staggering 685 percent increase since 2019. With Africa’s network energy efficiency lagging behind global standards, telecom operators face even greater power demands to meet user expectations.
In response, the NCC has partnered with the Rural Electrification Agency (REA) to form a joint committee focused on creating a renewable energy framework for telecom infrastructure. Executive Vice Chairman of the NCC, Aminu Maida, said the initiative aims to close both power and digital connectivity gaps, which remain significant barriers to the nation’s digital transformation agenda.
Source: Business day