Nigeria’s telecom regulator and IHS Towers are seeking to resolve a diesel supply blockade by oil sector unions that threatens to disrupt mobile phone services for millions of users in Africa’s largest population.
IHS, which operates more than 16,000 base stations for MTN, Airtel, Globacom and 9mobile, said the dispute is already before the courts and declined to share further details. The company made this known to Saturday PUNCH in response to queries about the crisis.
“We have, in the meantime, made formal reports to the Nigeria Communications Commission and relevant security agencies, and we are working with them towards a resolution of the ongoing matter,” IHS said in a statement on Friday.
Members of the Nigerian Union of Petroleum and Natural Gas Workers and the Natural Oil and Gas Suppliers Association of Nigeria on Tuesday blocked access to key diesel depots in Lagos, Kaduna, and Koko in Delta State, disrupting fuel distribution to thousands of telecom sites operated by IHS Towers.
The blockade followed allegations by IHS that two companies linked to NOGASA were involved in diesel theft. Although the matter is under investigation, union members have halted deliveries of the fuel.
Telcom operators rely heavily on diesel-powered generators to keep towers running due to unreliable grid electricity. A prolonged supply disruption risks cutting voice and data services for millions of users in the country’s $75bn telecom market.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, on Thursday urged the unions to resolve disputes through legal and contractual channels, warning that disruptions to telecom services could have serious economic and security implications.
“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,” he noted in a statement.
IHS reiterated its commitment to “keeping Nigeria’s critical information infrastructure running and providing customers with strong network uptime” despite the ongoing dispute. Under Nigerian law, telecom facilities are classified as Critical National Information Infrastructure, meaning intentional interference could attract penalties.
Nigeria’s mobile industry consumes more than 40 million litres of diesel monthly, with annual spending exceeding $350bn, according to industry data. Costs are about 37 per cent higher for rural and off-grid sites, where dependence on diesel is greatest.
To cut fuel costs and reduce carbon emissions, operators including Airtel and MTN are deploying hybrid energy systems combining solar panels and lithium batteries. The NCC and GSMA estimate that a shift to renewables could reduce operating costs by 30 per cent to 50 per cent.
