The Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have signed a memorandum of understanding to deploy renewable energy solutions for telecommunications infrastructure across the country.
The collaboration aims to reduce operators’ energy costs, improve network reliability and expand connectivity in rural communities.
The partnership is expected to reduce reliance on diesel and lower operating costs across the telecoms sector.
Speaking at the signing ceremony in Abuja, NCC executive commissioner for technical services Abraham Oshadami said telecom base stations located within one to two kilometres of existing mini-grids will be connected to cleaner, cheaper electricity, reducing dependence on diesel generators.
The initiative comes as telecom operators grapple with rising energy costs driven by unreliable grid power and increasing diesel prices, making power one of the industry’s largest operating expenses.
Nigerian telecommunications operators are estimated to have spent about ₦860 billion (approximately $560 million) on diesel in 2025 to keep networks running amid persistent power shortages.
Industry estimates indicate operators are now spending around ₦72 billion (about $47 million) monthly on diesel, translating to roughly ₦216 billion (about $141 million) in the first quarter of 2026 alone.
MTN Nigeria is estimated to have spent more than ₦60 billion (about $39 million) on diesel in 2025, illustrating the financial burden on operators.
While Airtel Nigeria and Globacom have not disclosed individual diesel expenditure, both have acknowledged rising energy costs as a major operational challenge.
The rising diesel bill underscores the significance of the partnership, which aims to migrate telecom sites to renewable energy supplied through mini-grids.
Industry stakeholders say the shift could lower operating costs, improve network reliability, reduce carbon emissions and support expansion into underserved rural areas.
According to Oshadami, the partnership will improve access to reliable electricity and telecom services, particularly in underserved communities, while ensuring future mini-grid projects support nearby telecom infrastructure.
REA executive director of technical services Umar Abdullahi said both agencies had previously pursued similar goals independently but will now coordinate investments through a joint implementation committee.
Industry analysts say the partnership could reduce operating costs, lower emissions and accelerate rural broadband expansion by making telecom sites more viable in off-grid locations.
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