Nigeria TV Info

NCC Raises Alarm as Rising Diesel Cost Threatens Telecom Sector

Nigeria’s digital economy is under mounting pressure as soaring energy costs threaten the sustainability of the telecom sector — the backbone of the nation’s connectivity.

At the heart of the crisis is diesel, the fuel powering more than 30,000 base stations nationwide. According to the Nigerian Communications Commission (NCC), operators consume over 40 million litres of diesel monthly to keep networks stable.

The challenge is not just an industry concern but a national risk. Telecoms, hailed as the lifeline of Nigeria’s modern economy, contributed 14.4 percent to the GDP in Q1 2025, according to the National Bureau of Statistics (NBS). Yet, rising diesel costs are eroding profit margins, stalling network expansion, worsening service quality, and threatening possible tariff hikes that could exclude millions from Nigeria’s digital ecosystem.

NCC Raises the Alarm

Speaking at a recent industry dialogue, NCC’s Executive Vice-Chairman, Dr. Aminu Maida, emphasized the urgency of the situation.

“The industry consumes over 40 million litres of diesel monthly. With the Dangote refinery now on-stream, we expect some relief. But if we don’t diversify beyond diesel, the sustainability of the sector remains at risk,” he said.

Maida’s remarks highlight growing concerns within government and industry circles that the energy crisis could reverse recent gains in broadband penetration, mobile money adoption, and digital inclusion.

As stakeholders look toward solutions, calls for alternative energy sources and urgent policy intervention are growing louder to protect one of Nigeria’s fastest-growing economic pillars.