IHS Towers, the infrastructure giant responsible for maintaining much of Nigeria’s telecom network, is collaborating with the Nigeria Communications Commission (NCC) and security agencies to address a diesel supply blockade that threatens to disrupt mobile services across the country.
The blockade, which has been caused by a dispute involving oil sector unions, is already affecting the smooth operation of over 16,000 mobile network towers that IHS manages for major telecom providers like MTN, Airtel, Globacom, and 9mobile. These companies depend heavily on diesel-powered generators to keep their base stations running due to Nigeria’s unreliable power grid. A prolonged disruption in diesel supply could significantly affect voice and data services, potentially impacting millions of users.
The ongoing dispute stems from allegations made by IHS Towers that two companies linked to the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) were involved in diesel theft. In response to the blockade, members of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and NOGASA have shut off access to key diesel depots in Lagos, Kaduna, and Koko in Delta State. This move has escalated tensions in an already critical sector.
In a statement on Friday, IHS Towers confirmed that the matter was under legal review but declined to provide further details. The company stated, “We have, in the meantime, made formal reports to the Nigeria Communications Commission and relevant security agencies, and we are working with them towards a resolution of the ongoing matter.”
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has also expressed concerns over the dispute. ALTON Chairman Engineer Gbenga Adebayo urged the unions to resolve the issue through legal and contractual channels, warning of the serious economic and security risks posed by any prolonged disruption to telecom services. Adebayo pointed out that telecom facilities are classified under Nigerian law as Critical National Information Infrastructure, and intentional interference could attract significant penalties.
The blockade, which started on Tuesday, has already put a strain on the telecom sector. Nigerian telcos consume over 40 million litres of diesel monthly, spending more than $350 million annually to keep their base stations operational. Costs are even higher in rural and off-grid areas where diesel dependence is greatest.
In response to rising fuel costs and to reduce carbon emissions, telecom operators, including MTN and Airtel, have been shifting towards hybrid energy systems that combine solar panels with lithium batteries. According to estimates from the NCC and GSMA, adopting renewable energy could reduce operating costs by 30 to 50 percent.
IHS Towers, however, has reiterated its commitment to ensuring the stability of Nigeria’s telecom infrastructure, pledging to maintain strong network uptime despite the ongoing dispute. The company’s ability to manage this crisis will be crucial in preventing a communications blackout, which could have wide-reaching implications for Nigeria’s $75 billion telecom market.
