Call and data service disruption looms as oil workers strike threatens 16,000 telcom sites

Nigeria’s telecommunications industry is on the brink of a major crisis. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has issued an urgent warning to the Federal Government. A diesel supply crisis, triggered by protests from oil workers, is threatening to shut down about 16,000 telecom sites across the country. 

This disruption could lead to widespread connectivity blackouts, affecting millions of Nigerians and critical sectors like banking, healthcare, and security.

The crisis stems from a blockade by the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Nigerian Oil and Gas Suppliers Association (NOGASA). 

These groups have halted diesel distribution from depots in Kaduna, Lagos, and Delta. The protests are in response to the alleged harassment of tanker drivers by security operatives. As a result, telcos, particularly IHS Towers, are struggling to secure diesel to power their base stations. 

Gbenga Adebayo, ALTON’s Chairman, emphasised the severity of the situation, saying, “The ongoing disruption in diesel supply is critically affecting our members’ operations.” Without immediate intervention, many telecom sites could run out of fuel within days. This would cause significant service disruptions, leaving millions disconnected.

Nigeria’s unreliable power grid forces telcos to depend on diesel-powered generators. Industry data shows that telcos consume an average of 40 million litres of diesel monthly to keep over 53,000 base stations operational. Each base station typically requires two generators to ensure 24-hour connectivity for Nigeria’s over 200 million mobile subscribers. 

The price of diesel has surged dramatically, reaching N1,406.05 per litre in August 2024, a 64.58% increase from N854.32 the previous year. This has driven monthly energy costs for telecom operators to N56.24 billion. The current blockade exacerbates these challenges, as operators cannot access fuel at any price.

Telecoms shutdown a threat to Nigeria’s digital economy

Telecommunications infrastructure is classified as Critical National Infrastructure (CNI) under Federal Government Gazette No. 133, Volume 108, dated March 17, 2021. Any disruption to these assets is considered a serious offence. ALTON warns that a prolonged shutdown could cripple Nigeria’s digital economy. Key sectors like emergency response systems, financial services, and security communications rely heavily on telecom networks. 

“This is not just a telecom issue; it’s a national emergency,” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON). He urged the governors of Lagos and Ogun to intervene and ensure diesel access from depots.

ALTON and ATCON have called for coordinated national action. They are urging security agencies, regulators, and the public to protect telecoms infrastructure. The operators are also exploring renewable energy solutions, such as solar and lithium-ion batteries, to reduce diesel dependency. However, these alternatives face challenges like theft and high initial costs.

In 2023, WATT Renewable Corporation signed a $13 million deal to modernise 200 telecoms sites, aiming to cut diesel consumption by 3 million litres annually. Despite these efforts, the immediate crisis requires government intervention to restore diesel supply chains.

A telecom shutdown would have far-reaching consequences. Businesses would suffer from disrupted connectivity, stalling growth and innovation. Healthcare systems, reliant on telecom for telemedicine and patient data, could face significant setbacks. National security operations, which depend on secure communications, would also be at risk. 

ALTON has previously warned of “service shedding”, where operators may limit services in certain areas due to unsustainable costs. The diesel crisis could accelerate this scenario, leaving rural areas particularly vulnerable. These regions already face higher operational costs due to poor grid access.

For now, the sector awaits urgent action from the Federal Government. Without swift intervention, Nigeria risks a communications blackout that could paralyse its digital ambitions.