NCC pushes solar adoption to ease telecoms’ energy cost

The Nigerian Communications Commission (NCC) is intensifying efforts to promote the use of renewable energy, especially solar, in the country’s telecoms sector, aiming to reduce operators’ reliance on diesel and lower costs.

Industry experts estimate that telecom operators use at least 40 million litres of diesel each month to maintain the country’s communications backbone. This amounts to more than $350 million (N534.16 billion) annually in diesel expenses, according to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation.

“A growing number of tower sites going off-grid or relying on diesel generators is a cause of concern for several reasons. First, it increases CAPEX and OPEX costs for operators, making investments in rural and remote areas even more prohibitive,” it said.

Nigeria’s national grid generates less than 5,000 MW despite energy demands of nearly 200,000 MW, forcing citizens and companies to rely on alternative energy sources like diesel and petrol-powered generators.

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The telecom sector, which serves 172.95 million subscribers, needs uninterrupted electricity to run its 34,862 towers (as of 2022). According to the Association of Licensed Telecommunications Operators of Nigeria (ALTON), diesel accounts for about 35 percent of telcos’ operating expenses.

“The biggest constraint in the telecom industry is high energy cost. If the government had continued to fulfill its part of the bargain it made in the early 2000s to provide 18 hours of electricity, the heavy logistics and the capital we spend today on powering sites would not be there,” said Gbenga Adebayo, president of ALTON.

As more Nigerians come online, telcos’ energy demands are also rising. Monthly internet usage reached 983,283.43 terabytes (TB) in April 2025, a 685.69 percent jump from 125,149.86 TB in December 2019. While the global energy requirement per GB is around 0.17 kWh, GSMA data show that in Africa, it is about 0.24 kWh per GB due to lower network energy efficiency.

To address this, the NCC has inaugurated a joint committee with the Rural Electrification Agency (REA) to develop a framework for deploying renewable energy across telecom infrastructure. According to Aminu Maida, executive vice chairman of the NCC, the initiative is designed to tackle both power and connectivity gaps that continue to hinder digital growth.

“Whether it is powering a base station or enabling a child to access digital learning, this partnership has the potential to transform realities and bring opportunity closer to the people,” he said. “This initiative is about more than infrastructure—it is about driving inclusion, bridging inequalities and creating the conditions for shared prosperity.”

The committee will focus on implementing integrated solutions that combine renewable energy infrastructure with telecom deployment. It will also align funding frameworks, share geospatial data to support planning, and track socio-economic outcomes using clear performance indicators.

GSMA estimates that renewable energy adoption can cut telecom operating costs by 30 to 50 percent while reducing carbon emissions. “For telecoms operators, renewable energy offers cost savings of 30–50 percent and significantly reduces carbon emissions, aligning with corporate sustainability and Nigeria’s climate goals,” it said.

NCC insiders say that telcos could achieve at least 20 percent in cost savings through renewable energy adoption. Some telcos are already adopting integrated power solutions. Airtel is exploring hybrid solutions that combine lithium batteries and solar to lower its energy bill.

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MTNN and Airtel recently renegotiated tower contracts with ATC and IHS to prioritise energy efficiency. MTN expects to save between N100 billion and N110 billion as a result.

According to GSMA, Nigeria’s solar energy potential is high, averaging 5.5 kWh/m²/day, which can help cut the operating costs of telcos. Despite this, renewables have their limitations. Adebayo of ALTON noted that alternative energy will not provide 24-hour backup, and its components are vulnerable to theft.

However, according to GSMA, renewables account for 70 percent of telco energy use in Europe, 40 percent in the U.S., and just 10 percent in Sub-Saharan Africa, highlighting their ability to support network infrastructure.