Telco Spends Over N60bn On Diesel Yearly Amid Poor Power Supply

Nigeria’s lingering power crisis is piling fresh operating costs on telecom operators, with MTN Nigeria disclosing that it spends more than N60 billion annually on diesel to power its nationwide network infrastructure.

The telecom provider disclosed in its 2025 Sustainability Report, where it also revealed a 6.4 per cent reduction in Scope 1 and Scope 2 greenhouse gas emissions as part of efforts to improve energy efficiency and climate resilience.

According to the report, diesel accounted for 58.11 per cent of MTN’s total energy consumption in 2025, far above gas-powered electricity sources and supply from the national grid. Renewable energy accounted for only 0.05 per cent of total energy use.

The development underscores the growing pressure on telecom operators battling unstable electricity supply, rising fuel prices and increasing infrastructure costs across the country.

MTN stated that persistent national grid failures continue to force operators to rely heavily on diesel generators to sustain network operations nationwide. Nigeria recorded multiple grid collapses in 2024, worsening operational challenges for businesses dependent on an uninterrupted power supply.

Although rising costs remain a challenge, the company said it is increasing investments in cleaner and alternative energy sources through its “Project Zero” initiative, which is targeted at achieving net-zero emissions by 2040.

The report disclosed that MTN invested about N10.1 billion in the initiative in 2025, generating estimated savings of N8.5 billion through energy-efficiency measures and alternative power deployment.

Part of the initiative involved replacing diesel-powered systems with gas-powered electricity and inverter solutions, while the company also expanded its solar-powered rural telephony sites from 194 to 229 to improve connectivity in underserved communities.

Chief executive officer of MTN Nigeria, Dr Karl Toriola, described the sustainability report as “an important milestone” in the company’s commitment to transparency and responsible business operations.

“This report is a record of decisive action and measurable progress as we deepen our commitment to sustainable, long-term value creation for all our stakeholders,” Toriola stated.

Industry analysts said the rising cost of diesel is becoming a major threat to profitability in the telecom sector, especially as operators continue to expand broadband infrastructure and data services amid Nigeria’s fragile power supply system.

Meanwhile, with diesel prices hovering around N2,000 per litre, this could significantly impact telecom operators’ margins if energy costs continue to outpace revenue growth.

However, the report noted that MTN Nigeria aligned its sustainability disclosures with IFRS S1 and S2 reporting standards, making it one of the early corporate adopters of the global sustainability reporting framework in Nigeria.

Additionally, the telco maintained that sustainability, operational resilience and responsible growth remain central to its long-term corporate strategy despite mounting energy and infrastructure challenges.