Telecom
Telcos in Nigeria, other Emerging Markets Squeezed by Diesel Crisis

The blockade of the Strait of Hormuz caused by the US and Israel’s war with Iran is placing fresh pressure on emerging market telecom operators, many of which remain heavily reliant on diesel generators to keep their networks running.

According to developingtelecom, with around 20% of the world’s oil supply disrupted and crude prices climbing above US$120 per barrel for the first time since 2022, operators across Africa, the Middle East and Asia are being hit by soaring energy costs at a time when demand for connectivity continues to rise. Markets including Pakistan, the Philippines and parts of Sub-Saharan Africa are among the hardest hit due to their dependence on imported fuel and unreliable national electricity grids.
Industry analysts warn the crisis could accelerate the telecom sector’s shift towards renewable energy and alternative network back-up solutions such as satellite connectivity, as diesel becomes increasingly expensive and operationally unsustainable.
Emerging markets bear the brunt
Crude oil prices rose above US$120 per barrel at the end of April, their highest level since 2022.
Emerging markets have been hit hardest, particularly countries that have failed to diversify their energy supply chains.
The Philippines is currently facing a major crisis, with 98% of its oil imports sourced from the Middle East. Pakistan has also seen supplies of liquefied natural gas disrupted, making daily life increasingly difficult for households and businesses alike.
For the telecoms sector, it is unsurprisingly operators in emerging markets that are bearing the brunt of the energy shock.
Many rely heavily on diesel generators to power base stations and telecom towers, particularly in remote areas with little or no access to national electricity grids. As a result, the challenge of connecting underserved communities is becoming even steeper.
According to environmental certification organisation Gold Standard, developing countries host an estimated 350GW to 500GW of diesel generator capacity spread across 20 million to 30 million sites, in many cases exceeding the capacity of national grids themselves. Even before the latest conflict, diesel power was already costly, averaging around US$0.30 per kilowatt-hour and significantly more in remote regions where the unconnected often live.
Gold Standard estimates annual spending on generator fuel reaches between US$30 billion and US$50 billion.
Diesel dependence driving operational pressure
CrossBoundary Energy estimates that around 70% of Africa’s half a million telecom towers rely on diesel generators, accounting for between 30% and 60% of tower operating expenditure. Fuel costs for operators across parts of Africa have surged by 40% to 60% over the past two years, with the Strait of Hormuz disruption adding further pressure.
Nigeria has been highlighted as one of the markets facing the most acute energy challenges, with grid availability in some regions falling as low as 40% to 50%. In rural areas of the Democratic Republic of Congo, telecom infrastructure is almost entirely dependent on diesel due to the absence of national grid access.
Across Sub-Saharan Africa, between 60% and 80% of telecom towers experience daily grid outages lasting between eight and 12 hours.
The demand for energy is only expected to rise further as operators continue expanding 4G coverage and rolling out 5G networks across emerging markets.
Renewable energy gains momentum
According to MTN Consulting, renewable energy accounted for just 23% of global telecom energy consumption in 2024, up from 10% in 2019.
However, much of that progress has been driven by operators in Europe rather than developing regions.
Operators including Turkcell, Tele2, Telia, Deutsche Telekom, KPN, Swisscom, A1 Telekom Austria, Telefonica, Telecom Italia and Liberty Global were highlighted by MTN Consulting as benefiting from long-term “foresight” as competitors elsewhere face increasingly volatile energy costs.
Operators forced to rethink network resilience
Ismail Patel, senior analyst for Enterprise Technology and Services at GlobalData, said energy concerns are now becoming inseparable from telecom strategy in emerging markets.
“Energy policy is increasingly being integrated into telecoms policy,” Patel said.
“Diesel is used in markets where there are unreliable electricity grids or frequent loadshedding. Thus far, diesel has been a core part of the business model, not just as a back-up for powering towers. The whole ecosystem of diesel – which involves manually delivering fuel to towers and manpower – is also part of the model.”
Patel warned that rising diesel costs caused by geopolitical instability will ultimately push up the price of connectivity or squeeze already-thin operator margins in highly price-sensitive markets.
“Operators will be forced to re-evaluate the most optimal back-up power mechanisms for their networks, including clean energy upgrades,” he said.
“This includes solar panels, which are susceptible to theft but do not have the immediate resale value of diesel, which is even more prone to unauthorised misappropriation.”
He added that satellite connectivity could emerge as a medium-term alternative for network resilience, particularly as direct-to-device (D2D) satellite services mature.
“Within this context, satellite as a back-up coverage mechanism might feature in the medium term, with both US and Chinese LEO satellite operators in a prime position to offer back-up connectivity to devices in place of towers,” Patel said.
“As the digital divide decreases and more underserved communities become dependent on connectivity, it will become far less economical for operators and governments to tolerate outages.”
Rather than being driven primarily by sustainability goals, Patel argued the shift towards renewable and satellite-powered infrastructure may ultimately become an economic necessity.
“Operators will start to look at greener options and satellite not because they are green or necessarily offer better coverage, but because they are becoming more cost-effective compared to diesel,” he said.
Patel identified Pakistan, Bangladesh, much of Sub-Saharan Africa including Nigeria and South Africa, Lebanon, and rural regions of India, Indonesia and the Philippines as among the markets most exposed to the crisis.
Telecom
Airtel Africa Cuts Diesel Dependence by 9.1m Litres

Airtel Africa, a telecommunications and mobile money services provider across 14 African countries, saved 9.1 million litres of diesel during its just ended 2025/2026 financial year, as part of efforts to drive responsible growth by minimising the environmental impact of its operations.

This was achieved by reducing reliance on diesel and increasing use of lower-carbon energy sources, including the conversion of 390 infrastructure sites to on-grid power during the year, thus improving efficiency and reducing emissions.
Airtel Africa CEO, Sunil Taldar highlighted this achievement during a media roundtable held in Lusaka, Zambia, where he presented the Group’s Sustainability Scorecard and progress towards building a more sustainable, inclusive and connected Africa.
Other initiatives to reduce Airtel Africa’s environmental impact during the year included promoting the circular economy, recycling 94% of total waste generated. These form part of Airtel Africa’s broader sustainability strategy, which seeks to create long-term value by balancing business growth with environmental stewardship, digital inclusion and socio-economic development.
Mr. Taldar emphasized that responsible growth remains central to Airtel Africa’s business strategy and is reflected in the company’s ability to extend services and opportunities to millions of people across the continent while advancing sustainability goals. Airtel Africa’s network now reaches 81.9% of the population across its markets, enabling greater access to connectivity, information, education and economic opportunities for individuals and communities.
The company recorded progress in its efforts to advance financial inclusion. Airtel Money now serves 54.1 million customers through a network of 2.4 million agents, making it one of Africa’s largest digital financial services ecosystems. Notably, 44.1% of Airtel Money customers are female, demonstrating the platform’s growing role in empowering women through access to secure, affordable and convenient financial services.
Beyond connectivity and financial inclusion, Airtel Africa, through its philanthropic arm, Airtel Africa Foundation continued to drive meaningful change across communities in the continent, investing US$6.2 million in priority programmes in four strategic areas namely Financial Inclusion, Education, Environmental Sustainability and Digital Inclusion.
Through its partnership with UNICEF, 3,296 schools have been connected to the free internet access, helping to bridge the digital divide and expand access to quality education reaching over 2 million learners and 38,868 teachers, while 64 zero-rated digital learning platforms enabled more than 11 million learners to access free digital educational content.
Also, during the year, more than 30,000 young people received digital skills training, while over 250 full undergraduate STEM scholarships were awarded through the Airtel Africa Tech Fellowship programme, helping to prepare the next generation of African innovators and technology leaders.
Telecom
Microsoft Axes 4,800 Jobs as Xbox Faces Major Crisis

Microsoft has announced plans to cut about 4,800 jobs globally, representing approximately 2.1 per cent of its workforce, as part of a broader restructuring aimed at improving efficiency and competitiveness.

The layoffs include about 1,600 employees in the company’s Xbox gaming division.
The company said additional job cuts are expected later this year as it continues efforts to reposition its gaming business.
According to an internal memo from Xbox Chief Executive Officer, Asha Sharma, the restructuring is intended to “reset” the business amid increasing competition in the gaming industry.
“Our business today is not healthy,” Sharma said in the memo.
“We are operating at margins that are three to 10 times lower than comparable platform and publishing businesses.”
She attributed the challenges facing the division to rising production costs and intense competition in the gaming hardware market.
According to Sharma, the gaming industry is currently experiencing a severe hardware crisis as the cost of components used in gaming consoles continues to rise.
Xbox competes with gaming platforms such as Sony’s PlayStation and Nintendo’s Switch.
The latest layoffs form part of Microsoft’s broader strategy to streamline operations and strengthen the long-term sustainability of its gaming business.
Telecom
A New Blueprint – How Strategic Collaboration is Rewriting the Narrative on Youth Drug Abuse

By Odunayo Sanya, Executive Director, MTN Foundation
Leadership, in its truest essence, is not about the titles we hold or the executive seats we occupy; it is about the responsibility we assume for the future of our communities. According to John Maxwell, a leader is one who knows the way, shows the way and goes the way. As we commemorate World Drug Day (26 June), we are collectively confronted with a sobering reality that demands that we intentionally create the conditions for Nigerian youths to thrive.

Odunayo Sanya, Executive Director, MTN Foundation
This year’s global theme reminds us that the fight against substance abuse demands a collective response because its consequences extend far beyond the individual, affecting public health, economic productivity, community wellbeing, and national development.
To understand the weight of what is at stake, we must anchor our empathy in empirical truth. The United Nations Office on Drugs and Crime (UNODC) Drug Use in Nigeria Survey (2018), still one of Nigeria’s most comprehensive national assessments of substance abuse, revealed a deeply distressing reality. Nearly 14.3 million Nigerians aged 15 to 64 had used psychoactive substances. While the survey remains an important benchmark, the passage of time since its publication underscores the urgent need for more current data to guide prevention and intervention efforts. Nonetheless, the survey revealed that one in every four drug users in Nigeria was a woman, while the highest concentration of users was found among young people. This is not just a health crisis; it is an economic crisis and a systemic threat to our nation’s future leadership.
When we look at these numbers, we must refuse to see them merely as data points on a spreadsheet. Every statistic represents a vibrant mind diminished, a family fractured and a potential corporate leader or innovator sidelined. In my journey across the corporate and development sectors, I have learned that systemic challenges cannot be solved by sporadic, emotional reactions. They require structured, intelligent, sustainable, and data-informed ecosystems of change. True change requires us to transition from passive observers to active architects of sustainable interventions.
It was this profound sense of responsibility and strategic foresight that birthed the MTN Anti-Substance Abuse Programme (ASAP) in 2019. We recognised early on that the traditional approach of criminalising substance abuse without addressing the root causes – curiosity, peer pressure, lack of information and socio-economic despair – was a flawed model. ASAP was conceptualised as a multi-sectoral behaviour-change initiative designed to contribute to the reduction of first-time substance abusers in Nigeria.
This year’s World Drug Day theme “The World Drug Problem: Persisting Issues, New Challenges, Innovative Responses” is both a reminder of the complexity of the menace confronting our nation and an urgent call to action. It is clear that only innovative responses can curb the ever-evolving tactics of illicit drug networks. Beyond traditional substances, the world is witnessing a rapid increase in the production, availability and use of synthetic drugs. The commoditisation of prescription medicines has contributed to substance abuse. The inordinate use of technology as an enabler of cybernarcotics has changed the dynamics of the game.
Let me bring this closer home with some numbers. From January 2025 to May 2026, the NDLEA seized 5,305,484.88 kilograms of illicit drugs worth N1.5 trillion through 29,262 arrests. Recently, on May 16, the NDLEA busted a meth manufacturing ring in Ogun State. The scourge is no longer a distant tale: it resides with us. So, we must rise together as stakeholders in this war against substance abuse.
Over the years, the impact recorded through the ASAP initiative is a testament to the power of public-private sector partnerships. Through strategic partnerships with the NDLEA, the UNODC, the Ministry of Education, the Ministry of Health, and various non-governmental organisations, the MTN Foundation has institutionalised the anti-substance abuse advocacy. We have taken the message directly to the frontlines – our schools, motor parks, markets, and digital spaces. By building a coalition of voices, we are demystifying the stigma surrounding addiction, turning what was once whispered in shame into open and constructive community dialogues.
Our journey this year has been marked by a powerful surge of collective action. From stakeholder conferences in Enugu, Kaduna, Kwara and Abuja, to the resonant advocacy walks in tertiary institutions across Gombe, Delta, Abuja and Lagos, the response has been nothing short of extraordinary. The scale of this support – uniting associations, students, and parents alike – is a testament to the urgency and shared commitment driving this movement.
Our interventions have yielded measurable outcomes. To date, the ASAP initiative has directly impacted over 50,433 students and 1,556 teachers across public secondary schools in 32 states and the FCT, through structured anti-substance abuse capacity building initiatives, digital advocacy, peer-to-peer training, and community town halls. By empowering young people to become ambassadors themselves, we have leveraged the power of peer influence positively. We have seen firsthand that when you give a young person the right tools, accurate information, and a sense of purpose, they will choose a path of productivity over self-destruction.
True leadership, however, refuses to rest on yesterday’s laurels; it constantly asks where the next frontier of impact lies and what it requires. It is this restless pursuit of evidence-based and sustainable solutions that culminated in a historic milestone just two months ago, when the MTN Foundation, the United Nations Office on Drugs and Crime (UNODC), and the Office of the Vice President formalised a partnership to undertake Nigeria’s first nationally representative substance abuse survey among secondary school students. At a time when the most widely referenced national substance abuse data is almost a decade old and does not adequately capture the realities of in-school adolescents, this initiative seeks to provide the evidence needed to shape more targeted interventions and policy responses. The collaboration, which drew high praise from Vice President Kashim Shettima (GCON), is a powerful validation of our commitment to Nigeria’s youth and our belief that lasting solutions are built through multi-sectoral partnerships.
As a certified change practitioner, I know that for any behavioural shift to be sustainable, the intervention must be systemic, continuous, and dynamic. This year, our World Drug Day activities have been intentionally scaled up to meet the evolving landscape of substance abuse, particularly the rise of cheaper, highly lethal synthetic mixtures. Our focus this year focuses heavily on the digital ecosystem – leveraging technology to deploy accessible mental health resources, psychosocial helplines, and interactive awareness modules – because that is where our youth live, connect, and learn.
In tandem with our digital drive, this year’s ASAP calendar features high-level policy roundtables, quiz competitions, and grassroot activations across educational institutions. We are deliberately engaging policymakers to ensure that advocacy is backed by robust institutional frameworks. It is not enough to tell our children to say no to drugs; we must build a society that offers them a resounding “yes” to viable economic opportunities, mental health support, and inclusive community spaces.
The universe, as I often like to say, rewards extraordinary effort. The crisis before us is vast, but our collective capacity to innovate and heal is even greater. We cannot afford to look away or assume that this is someone else’s problem. The teenager struggling with addiction in a remote community is tied to the collective economic stability of our communities. Their failure is a leak in our national boat; their recovery is our shared victory.
As we mark World Drug Day, my call to action is to the government, corporate Nigeria, civil society organisations, and every well-meaning citizen: let us move from intent to action by investing heavily in preventive advocacy and psychosocial support structures. Let us choose to know the way, show the way, and walk the way together toward a drug-free, prosperous Nigeria.
Remember, it is everyone’s fight!
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