By Kayode Akinyemi

High diesel costs have become a major choke point to the Nigerian telecommunications industry, with operators spending over $350 million annually on diesel to power base stations due to unreliable grid electricity (PunchNewspaper, June 9, 2025). Official data indicate that as of early 2024, the monthly expenditure on diesel by telcos reached approximately N85 billion,  a figure that has surged due to the removal of fuel subsidies, downward spiral of the naira, and rising global oil prices. 

These unsavory energy situations simply translate to huge operational strains as telcos consume over 76 million litres of diesel monthly to power over 40,000 towers. Indeed, diesel costs account for about 70 per cent of operating expenses (OPEX) for some operators. These operational constraints, combined with inflationary pressures and foreign exchange volatility, severely threaten the financial viability of telecoms operators and slow down the expansion of modern 5G networks in the country. 

Increased fuel prices have led to industry experts warning of a “threat to the communication backbone” and a decrease in service quality due to the high cost of maintenance. Shortages in diesel supply often cause network disruptions in some places.

In response to the debilitating effects of high  energy cost, equipment vandalism, and high cost of foreign exchange involved in diesel imports and their impact on service efficiency, telecomm stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have  pushed for higher call and data tariffs to reflect the current cost of operations Some telecos have also picked the gauntlet by embracing renewable energy and actively shifting towards hybrid energy systems (solar panels and lithium batteries) to reduce dependency on diesel.

Market reality and necessity have also led to synergy and collaboration among operators to explore infrastructure Sharing as a strategy for cost optimization by transferring tower management to infrastructure companies that can manage energy more efficiently. 

As a strategic approach to the energy conundrum, Glo Nigeria has implemented an energy transition arrangement from diesel dependence to a hybrid power system that maximises the benefits of green energy solutions. The investment in alternative  energy sources is not only cost effective in the long run, it is an eco friendly and sustainable business solution for reducing carbon dioxide emissions in line with global standards. The new hybrid power system improvement is  being activated in both existing and new sites across the country, using both grid electricity, solar, and battery inputs. This action has led to significant reduction in diesel consumption and, by extension, substantial cost reduction.

Glo Nigeria’s new energy policy is also a panacea to the cumbersome logistics and maintenance bottlenecks encountered when fueling remote, hard-to-access sites which require immense logistical effort, causing downtime if supplies are delayed or interrupted. 

Telecommunications industry analysts said although the cost of deploying new power alternatives may be expensive at the beginning, the benefits are long lasting and huge as it solves the problems of insufficient grid electricity and ultimately reduces operating costs.

They argued that widespread power shortages force towers to rely almost entirely on diesel generators, escalating energy consumption and costs, thereby reducing profitability and limiting funds for network expansion and maintenance, contributing to network service degradation.

Recently, the Association of Licensed Telecommunication Operators of Nigeria (ALTON), revealed that thieves are targeting essential telecom components, including power cables, rectifiers, fibre optic cables, feeder cables, diesel generators, batteries, and solar panels. These items, ALTON stressed, are not just ordinary materials but represent the backbone of Nigeria’s communications network, security systems, and digital economy.

Similarly, the Nigeria Communications Commission (NCC), disclosed that over 50,000 cases of major destruction to telecom infrastructure and facilities had been reported across the country in the past five years, raising alarm over the implication of these incidents to the quality of telecommunications services in Nigeria.

The NCC said the impact of vandalism of infrastructure is felt by all in the quality of services rendered as it results in increasing drop calls, data and Internet connectivity disruptions, aborted and undelivered short messaging services (SMS), as well as countless failed calls.

On its part, Glo Nigeria has been proactive in the security arrangement to safeguard its critical equipment and infrastructure located all over the country. This underlines some strategic actions and investments in new technologies to give full protection coverage to some of its critical assets and infrastructure.

Globacom (Glo) employs a combination of physical infrastructure security, technical measures, and partnerships to protect its equipment and network.  Recent initiatives and strategic actions include:AI-driven security systems for enhanced protection of critical network assets, particularly in the South West region. 

Glo Nigeria employs security teams, surveillance, and reinforced equipment to prevent the theft of generators, batteries, and fuel at base transceiver stations (BTS). In addition, with the aid of real time  Infrastructure monitoring tools and geospatial mapping, it is able to identify high risk zones and protect against fibrecable cuts during road construction

Telecommunication industry analysts opine that Glo’s new hyprid power system initiatives can lead to substantial cost savings in energy bill, thereby resulting in improved and uninterrupted network operations which guarantees continuous excellent customer experience.

•Akinyemi,  Fellow of Nigerian Institute of Public Relations (NIPR), writes from Lagos.