Nigeria’s telecommunications industry is facing mounting operational costs, mainly due to its heavy reliance on diesel-powered generators, according to the Africa Finance Corporation (AFC).
In its newly released State of Africa’s Infrastructure Report 2025, the AFC revealed that telecom operators in Nigeria consume over 40 million litres of diesel monthly, resulting in annual expenses exceeding $350 million. The report attributes this high cost to the unreliable public power supply, which has forced many operators to turn to off-grid energy solutions to maintain service uptime.
“A growing number of tower sites going off-grid or relying on diesel generators is a cause of concern for several reasons,” the report noted. “First, it increases CAPEX and OPEX costs for operators, making investments in rural and remote areas even more prohibitive.”
The report cited data from GSMA Intelligence, which shows that energy costs for mobile base stations in rural areas can be up to 37% higher than in urban locations. This cost disparity discourages investment in rural connectivity and further widen the digital divide.
In addition, the report warned that the high energy burden affects the affordability of mobile broadband services, as network operators pass on some of these costs to consumers.
Africa’s mobile networks, it concluded, are less energy-efficient and more expensive to run compared to global averages, putting further pressure on a sector that is critical for digital transformation across the continent.
