Telecom Giant Faces Power Supply Challenges in Nigerian Market

Leading telecom operator MTN Nigeria revealed it uses approximately 1.5 million litres of diesel monthly to power its extensive network across the country. This substantial consumption underscores the challenges businesses face in Nigeria’s unreliable electricity grid.

The disclosure came from Chief Technical Officer Yahaya Ibrahim during a mid-year review, highlighting how MTN allocates its revenue—which reached ₦707.54 billion profit after tax on ₦1.7 trillion revenue for the first half of 2026, with data usage contributing significantly.

While alternative energy sources like gas and solar power some base stations, diesel remains the primary fuel for MTN’s 66,000 operating sites that serve 92 million subscribers nationwide. The company shares these facilities with tower management firms such as IHS Towers and ATC.

Rising Fuel Costs Strain Operations

The diesel usage is particularly concerning given current market prices—a litre now costs close to ₦1,950—and Nigeria’s ongoing power supply instability which forces businesses to rely on costly alternatives like generators.

Industry experts note that Nigerian telecom operators collectively consume at least 40 million litres of diesel monthly, representing a staggering ₦72 billion expense. This financial burden impacts service pricing and infrastructure investment.

Vandalism Threatens Network Reliability

Beyond power challenges, MTN faces significant physical security risks—experiencing an average of 450 site vandalism incidents daily. These attacks disrupt services, require costly repairs, and strain the company’s operating budget.

Access delays to damaged sites due to landlord disputes or security concerns further compound the problem. When network outages occur, businesses and individuals suffer immediate financial losses from disrupted mobile banking, remote work, and communications.

MTN has invested over ₦1.6 trillion in recent years expanding its fibre network, building new towers, and upgrading existing infrastructure—demonstrating a commitment to improving service quality despite these operational headwinds.