Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), and tower operator IHS Towers are engaging in efforts to resolve an escalating diesel supply blockade by oil sector unions, which threatens to disrupt mobile services for millions in Africa’s most populous nation.
IHS, which operates over 16,000 base stations for major telecom operators including MTN, Airtel, Globacom, and 9mobile, confirmed that the dispute is already before the courts but declined to give further details. In a statement issued to Saturday PUNCH, the company said:
“We have, in the meantime, made formal reports to the Nigerian Communications Commission and relevant security agencies, and we are working with them towards a resolution of the ongoing matter.”
The conflict began on Tuesday when members of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) blocked access to key diesel depots in Lagos, Kaduna, and Koko in Delta State. This action disrupted fuel deliveries to thousands of telecom sites operated by IHS Towers.
The blockade follows allegations by IHS that two companies linked to NOGASA were involved in diesel theft. Although the matter is still under investigation, union members have halted all deliveries of the fuel.
Due to Nigeria’s unreliable electricity grid, telecom operators rely heavily on diesel-powered generators to keep base stations running. A prolonged supply cut could severely impact voice and data services across the country’s $75 billion telecom market.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, urged the unions to use legal and contractual channels to settle disputes, warning of significant economic and security consequences if telecom services are disrupted.
“While ALTON does not interfere in disputes between its members and third parties, we are gravely concerned about the wider implications of this action on national infrastructure and public safety,” Adebayo said in a statement.
IHS reiterated its commitment to maintaining Nigeria’s critical communications infrastructure and ensuring network stability for customers during the dispute. Under Nigerian law, telecom facilities are classified as Critical National Information Infrastructure, making deliberate interference a punishable offence.
Industry data shows that Nigeria’s mobile sector consumes over 40 million litres of diesel each month, with annual spending exceeding $350 billion. Operating costs are about 37 per cent higher for rural and off-grid sites, where dependence on diesel is greatest.
To reduce costs and carbon emissions, major operators such as Airtel and MTN are increasingly deploying hybrid energy systems combining solar panels and lithium batteries. According to estimates from the NCC and the GSM Association (GSMA), switching to renewable energy could lower operating costs by 30 to 50 per cent.
As the dispute continues, all eyes are on the NCC’s mediation efforts, with stakeholders urging a swift resolution to avoid nationwide service disruptions that could impact businesses, security operations, and millions of everyday users.
