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Nigeria’s telecoms in crisis as diesel supply blockade looms

The situation is dire for Nigeria’s telecom operators and their customers, with a diesel supply blockade by oil sector unions threatening to disrupt mobile phone services across Africa’s largest population.

The Blockade

  • Oil sector unions, including the Nigerian Union of Petroleum and Natural Gas Workers and the Natural Oil and Gas Suppliers Association of Nigeria, have blocked access to key diesel depots in Lagos, Kaduna, and Koko in Delta State
  • Thousand of telecom sites operated by IHS Towers, which supply fuel to mobile operators

The blockade, which started after allegations by IHS that two companies linked to NOGASA were involved in diesel theft, has halted deliveries of fuel to thousands of telecom sites operated by IHS Towers.

A Threat to Mobile Services

Telecom operators rely heavily on diesel-powered generators to keep towers running due to unreliable grid electricity. A prolonged supply disruption risks cutting voice and data services for millions of users in the country’s $75bn telecom market.

Consequences of Disruption Millions of users without voice and data services Potential economic and security implications
Annual spending exceeding $350bn 40 million litres of diesel monthly 30% to 50% reduction in operating costs

A Plea for Resolution

  • Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, urged the unions to resolve disputes through legal and contractual channels
  • ALTON warned that disruptions to telecom services could have serious economic and security implications

IHS Towers Response

IHS reiterated its commitment to “keeping Nigeria’s critical information infrastructure running and providing customers with strong network uptime” despite the ongoing dispute. Under Nigerian law, telecom facilities are classified as Critical National Information Infrastructure, meaning intentional interference could attract penalties.

A Shift to Renewables

Operators like Airtel and MTN are deploying hybrid energy systems combining solar panels and lithium batteries to cut fuel costs and reduce carbon emissions. The NCC and GSMA estimate that a shift to renewables could reduce operating costs by 30% to 50%.

“While ALTON does not interfere in disputes between its members and third parties, we are gravely concerned about the wider implications of this action on national infrastructure and public safety,”

“While ALTON does not interfere in disputes between its members and third parties, we are gravely concerned about the wider implications of this action on national infrastructure and public safety,”

Despite the ongoing dispute, IHS Towers remains committed to providing strong network uptime, despite the ongoing dispute.

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