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Telcos in Nigeria, other Emerging Markets Squeezed by Diesel Crisis

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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.

Telcos in Nigeria, other Emerging Markets Squeezed by Diesel Crisis

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.

 


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Ebere Melum-Nwogbo is a trained and practicing journalist. She is passionate about ICT and business journalism. She has over a decade experience spanning money and capital market as well as information technology

Telecom

No Plans for Fresh Tariff Hike – MTN

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Dr Karl Toriola, chief executive officer, MTN Nigeria, has assured its subscribers that another telecom tariff increase is not imminent.

No Plans for Fresh Tariff Hike - MTN

Dr Karl Toriola, chief executive officer, MTN Nigeria

He also clarified his recent comments on unlimited mobile data, saying they were taken out of context.

Toriola who spoke during an interview on TVC’s Beyond the Headlines, said his remarks at MTN’s Data on Trial public engagement were intended to explain the technical limitations of mobile networks rather than suggest that consumers could never access unlimited data.

According to him, excerpts of his comments circulated online did not reflect the full context of the discussion.

“People took snippets of the conversation, and the entirety of the conversation is available on YouTube. There’s nothing to be hidden there, and they took it slightly out of context,” he said.

Toriola explained that mobile networks are constrained by finite spectrum resources, making unrestricted data usage technically impossible without affecting the quality of service for other subscribers.

“Mobile wireless technology to offer data is limited by one factor—spectrum—and spectrum is a finite resource. You cannot put an excessive load of data traffic onto a mobile network without having a degradation of the quality of service for other people,” he said.

He added that while many telecom operators market data plans as unlimited, such packages are generally governed by fair usage policies, under which internet speeds are reduced after subscribers exceed specified usage thresholds.

Toriola said MTN is working towards introducing similar products but noted that they would also be subject to fair usage limits to protect network quality.

Addressing concerns over rapid data depletion, the MTN chief executive said operators do not deliberately consume customers’ data, attributing much of the usage to background activities such as automatic cloud backups on applications including WhatsApp, Google Cloud and iCloud.

“A significant amount of data that’s consumed on your handsets is done without your realisation,” he said.

He advised subscribers to review their device settings and configure cloud backups to run only over Wi-Fi or at less frequent intervals.

To illustrate the point, Toriola said an audit of the phone of one of MTN’s chief officers, who had complained about unusually high data usage, revealed that WhatsApp was automatically backing up about 120 gigabytes of data.

On telecom pricing, Toriola said another tariff increase is not expected in the near term, although future reviews would depend on prevailing economic conditions and the cost of sustaining network operations.

“The increment is not imminent. But over time, depending on economic conditions, there might be possible tariff increases,” he said.

He maintained that the tariff adjustment implemented in 2025 was necessary to ensure the sustainability of the telecommunications industry after more than a decade without a price review despite rising operating costs.

Toriola also disclosed that MTN invested ₦390 billion in capital expenditure during the first quarter of the year, exceeding its ₦359 billion profit after tax for the same period.

He identified fibre cuts, vandalism, unreliable electricity supply and restricted access to telecom infrastructure as major factors affecting service quality.

“We have more fibre cuts in a day than the whole Kingdom of Saudi Arabia has in a year,” he said.

Responding to calls for sanctions against MTN over recurring xenophobic incidents in South Africa, Toriola said MTN Nigeria is a Nigerian company in ownership and operations, noting that it is listed on the Nigerian Exchange, has only four expatriates in its workforce and has millions of Nigerian shareholders through direct investments and pension funds.

“We unequivocally condemn any form of xenophobia, any form of violence, any form of attacks against any community in the world,” he said.


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Airtel Africa Foundation Equips 200 Young Women with Digital Skills to Drive Nigeria’s Tech Economy

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Airtel Africa Foundation, through Airtel Nigeria and in partnership with the Ishk Tolaram Foundation, Co-Creation Hub (CcHub), and SAIL Innovation Lab, has commenced the DigiLeap Women in Tech Programme, a transformative initiative designed to equip 200 young women from underserved communities in Ikorodu, Lagos, with industry-relevant digital skills and pathways into Nigeria’s rapidly expanding technology sector.

The programme, hosted by the SAIL Innovation Lab Ikorodu, comprises a 12-week immersive learning experience from June to September 2026, designed to prepare participants for careers in Product Design, Software Development, Digital Marketing, and Data Analytics.

Beyond technical training, beneficiaries will receive leadership development, structured mentorship from Airtel Nigeria professionals, and internship opportunities that provide practical workplace experience and exposure to industry best practices.

Commenting on the programme kick-off, Segun Ogunsanya, Chairman of the Airtel Africa Foundation, said empowering young women with digital skills represents one of the most sustainable investments in Africa’s future.

He also noted that the initiative reflects Airtel Africa Foundation’s continued commitment to expanding access to digital education while creating opportunities for young Africans to participate meaningfully in the continent’s digital transformation.

“We encourage every participant to approach this programme with purpose, discipline, and curiosity. The knowledge, networks, and mentorship you gain over the coming weeks have the potential to transform not only your own future but also the lives of your families, communities, and the next generation of girls who will look up to you. This is how lasting impact is created,” Ogunsanya said.

Also speaking on the initiative, Dinesh Balsingh, Chief Executive Officer of Airtel Nigeria, highlights that the initiative aligns with the company’s commitment to building an inclusive digital economy by ensuring more young Nigerians, particularly women, are equipped for the jobs of the future.

Balsingh said, “Nigeria’s digital economy presents enormous opportunities, but participation must be inclusive if we are to realise its full potential. Through the Airtel Africa Foundation, we are intentionally investing in young women because we recognise the immense value they bring to innovation, technology, and economic growth.

“DigiLeap is designed to equip participants with practical, industry-relevant skills that employers are looking for today while also giving them the confidence, mentorship, and professional exposure needed to build successful careers.”

According to the DigiLeap curriculum, participants will engage in intensive classroom instruction, hands-on projects, mentorship sessions, and internship placements designed to bridge the gap between learning and employment.

Airtel Nigeria professionals will serve as mentors, providing career guidance and sharing real-world industry insights to help participants transition successfully into the technology workforce.

The DigiLeap Women in Tech Programme spotlights the Airtel Africa Foundation’s growing investment in digital inclusion and youth empowerment across Africa. By creating pathways for more women to access technology careers, the Foundation continues to contribute to Nigeria’s digital transformation agenda while helping build a diverse pipeline of talent capable of driving innovation, creating businesses, and shaping the future of the country’s digital economy.


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Xenophobia: MTN Nigeria Belongs to Nigerians, Not Only South Africans — Toriola

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Karl Toriola, chief executive officer, MTN Nigeria, has stated that the telecom company is “a Nigerian company through and through,” emphasising that it belongs as much to Nigerians as to its global investors, with over 11 million Nigerians holding indirect stakes through pension funds.

Xenophobia: MTN Nigeria Belongs to Nigerians, Not Only South Africans — Toriola

Toriola also defended the federal government’s approval of telecom tariff adjustments, noting that the move helped prevent a financial crisis in the sector and enabled the company to ramp up capital expenditure to about N1 trillion in 2025 to improve network quality.

Speaking during an interview on Arise News, the MTN boss dismissed claims that the company is solely South African, despite its origins.

According to him, MTN Nigeria is incorporated locally, listed on the Nigerian Exchange, pays taxes in Nigeria, and is largely managed by Nigerians.

“We are labelled as a South African company because MTN Group was founded in South Africa. But the reality is that MTN Group has a very diverse global shareholding. Only about 50 percent of the shareholding is African, while the rest is held by investors from North America, Europe, the United Kingdom, the Middle East and Asia-Pacific,” he said.

Speaking further on MTN Nigeria’s identity, Toriola stressed the company’s deep roots in the Nigerian economy.

“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.

“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people.

“We have over 201,000 retail investors, while about 11 million Nigerians own MTN shares indirectly through pension funds. We are very proud of our Nigerian identity,” he stated.

On the recent telecom tariff adjustment, Toriola said the increase was driven by necessity rather than profit motives, noting that operators were struggling to meet basic financial obligations before the review.

“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.

He added that the improved revenue base has enabled MTN to scale up infrastructure investments to enhance service delivery.

“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” he said.

Addressing concerns over poor network quality, Toriola attributed the challenges to increasing demand, infrastructure gaps, vandalism, insecurity, and unreliable power supply.

“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers. We also face security challenges that prevent our engineers from quickly accessing some sites.

“In addition, we operate about 18,000 sites nationwide, each requiring generators, batteries, rectifiers and constant fuelling because of inadequate public electricity supply. All these affect quality of service,” he explained.

While acknowledging that service quality still needs improvement, he assured customers of continued investment.

“We are not perfect, but we are investing aggressively and continuously striving to do better,” he added.

On allegations that telecom operators deliberately deplete customers’ data, Toriola said findings often point to background data usage by smartphone applications.

“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.

“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.


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