MTN Nigeria’s margins face a potential N140 billion ($87.5 million) hit as diesel prices approach N2 000 ($1.43) per litre.
The operator is intensifying its transition to gas-powered infrastructure to protect network operations from Nigeria’s deepening energy challenges.
Sustained increases in energy costs could trigger a 2% margin decline, says the operator, underscoring mounting pressure despite surging data demand.
MTN Nigeria consumes more than 40 million litres of diesel yearly to power thousands of base stations, data centres and switching facilities nationwide, according to industry estimates.
In its latest sustainability report, diesel accounted for 58.11% of the company’s total energy consumption in 2025, far ahead of gas-powered sources at 23.63% and grid electricity at 18.04%. Renewable energy contributed only 0.05%, highlighting the sector’s continued dependence on fossil fuels amid unstable electricity supply.
The company’s Scope 1 and Scope 2 emissions rose by 4.8% in 2025 due largely to increased diesel usage and continued network expansion, says Karl Toriola, CEO of MTN Nigeria.
He went on to say energy reliability has become critical to sustaining service delivery as the operator deepens investments in cloud services, fintech and data centre infrastructure.
Energy accounts for up to 40% of telecom operating costs in Nigeria, with operators increasingly exposed to fuel price volatility and weak grid infrastructure, research from the Association of Licensed Telecommunications Operators of Nigeria shows.
MTN nearly doubled capital expenditure to N390.3 billion ($278.8 million) in the first quarter of 2026. This was driven partly by investments in alternative energy systems, including gas and solar-hybrid solutions aimed at reducing diesel dependence.
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