Anatomy of Near-Total Digital Collapse:A commercial war over alleged diesel theft and debt between IHS Towers and NOGASA threatened to silence over 16,000 base stations. REMMY NWEKE reports in this TelecomsClinic@ITREALMS how swift intervention by the NCC and ONSA averted a catastrophic national network blackout, exposing the fragility of Nigeria's digital backbone.
The severe Quality of Service (QoS) degradation and persistent network outages that recently plagued Abuja subscribers were not mere technical malfunctions; they were the consequence of a perilous, high-stakes commercial conflict over the most critical resource sustaining Nigeria’s digital economy: diesel fuel.
The crisis reached a fever pitch with the Nigerian Communications Commission (NCC) stepping in decisively. The Commission, through its Head of Public Affairs, Mrs. Nnenna Ukoha, officially confirmed that the network disruption was rooted in a major diesel supply blockade orchestrated by the National Oil and Gas Suppliers Association (NOGASA). This action created critical bottlenecks in fuel delivery to IHS Nigeria Limited, the essential colocation provider powering key base stations for major operators like Airtel and MTN in the Federal Capital Territory.
The NCC’s statement stressed the indispensable role of a reliable power supply for maintaining optimal telecommunication services, pledging active collaboration and proactive dialogues with all stakeholders to immediately resolve the logistics issues and explore more sustainable power solutions. The regulator urgently implored all parties to collaboratively remove the diesel supply bottlenecks impacting Critical National Information Infrastructure (CNII), which is legally protected under Nigerian law.
Theft Versus Debt:
The underlying cause of the supply withdrawal is a commercial dispute between IHS Towers and NOGASA that escalated into a national security threat. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) brought the conflict into the public eye, revealing two contradictory claims:
IHS Towers' Allegation (Supported by ALTON): The blockade was triggered by IHS alleging diesel misappropriation against two companies belonging to NOGASA. IHS claimed these firms had allegedly diverted or misappropriated diesel stock meant for powering its telecom base stations, reporting the matter to relevant authorities suspected to be the Economic and Financial Crimes Commission (EFCC) for investigation.
NOGASA's Counter-Claim: NOGASA vehemently refuted the misappropriation claims, labeling them a "total lie." The Association insisted their action was due to huge outstanding debts accumulated by IHS Towers for services rendered and diesel supplied by its member companies. NOGASA argued that the blockade was an assertion of their right to be paid, accusing IHS of "imperial rascality and insensitivity" in failing to settle their charges. The Association claimed IHS officials declined to attend a National Executive Committee meeting called to reconcile the outstanding figures, forcing the suppliers to act.
Intervention and Looming Threat:
The feud quickly metastasized beyond Abuja, threatening critical diesel depots across Lagos, Kaduna, and Delta State. With over 16,000 base stations nationwide facing imminent shutdown, the potential for a cascading collapse of mobile networks, banking transactions, and emergency services forced high-level government intervention. Due to the severe threat to the national economy and public safety, the Office of the National Security Adviser (ONSA) and the Nigerian Communications Commission (NCC) were compelled to mediate.
Following this robust intervention, NOGASA announced a temporary suspension of the strike and directed members to resume supply to IHS Towers.
However, the truce is fragile, marked by a seven-day ultimatum issued by NOGASA for the outstanding commercial issues and debts to be definitively resolved. Failure to comply, they warned, would result in the resumption of the supply withdrawal.
While the immediate danger was averted, the NCC's statement focuses on resolving the logistics bottleneck to restore service while the underlying, critical commercial conflict is addressed by government agencies.
History of Diesel Reliance and Recurring Crises:
The immediate crisis is not an isolated incident but a symptom of the Nigerian telecom sector's fundamental vulnerability: its heavy, expensive, and insecure reliance on diesel for power. The history of diesel-related challenges in the country is long-standing and primarily revolves around two axes: cost fluctuations and supply disputes.
1. The Cost Feuds
Historically, the Nigerian telecom industry has been in constant financial tension due to the volatile price of diesel. Operators, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have repeatedly lamented the crippling operational expenditure (OPEX) driven by diesel, which can account for up to 35% of their total OPEX.
2022-2024 Price Surge: Following global events and the Nigerian Naira devaluation, diesel prices soared dramatically, climbing from approximately N288 per litre in early 2023 to over N1,100 per litre by the end of the year, and even higher in 2024.
The Resolution Effort (Tariff Review): In response to this crushing financial pressure, telcos formally requested the NCC to allow for a tariff review (sometimes up to 40% or more) to reflect the skyrocketing cost of powering their sites, which consume an estimated 40 million litres of diesel monthly. While the NCC, being a consumer-focused regulator, has generally resisted major tariff hikes, the pressure remains a constant source of tension and a threat to network investment.
2. Shift to Renewable Energy:
The most significant and ongoing resolution effort is the strategic transition away from diesel. Recognizing that annual diesel expenditure exceeds US$350 million, the government and industry are prioritizing renewable solutions.
NCC-REA Collaboration: The NCC, in collaboration with the Nigerian Rural Electrification Agency (REA), launched a joint initiative to deploy renewable energy solutions across telecom infrastructure nationwide. This collaboration focuses on solar power, battery systems, and hybrid energy to lower operating costs by an estimated 30% to 50% and enhance network resilience.
Operator Adoption: Major operators like MTN and Airtel, and tower companies like IHS Towers and ATC Nigeria, are increasingly integrating solar, lithium batteries, CNG, and LPG to power their sites, especially in rural and off-grid locations where diesel is most expensive and vulnerable to theft.
Summary:
In summary, while the recent IHS/NOGASA feud was unique in its direct and explicit threat of a national shutdown due to debt and theft allegations, the history of the Nigerian telecom sector is fundamentally defined by its continuous, expensive, and fragile reliance on diesel, a vulnerability that the ongoing shift toward renewable energy seeks to permanently resolve.
History of Diesel Reliance and Recurring Crises:
The immediate crisis is not an isolated incident but a symptom of the Nigerian telecom sector's fundamental vulnerability: its heavy, expensive, and insecure reliance on diesel for power. The history of diesel-related challenges in the country is long-standing and primarily revolves around two axes: cost fluctuations and supply disputes.
1. The Cost Feuds
Historically, the Nigerian telecom industry has been in constant financial tension due to the volatile price of diesel. Operators, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have repeatedly lamented the crippling operational expenditure (OPEX) driven by diesel, which can account for up to 35% of their total OPEX.
2022-2024 Price Surge: Following global events and the Nigerian Naira devaluation, diesel prices soared dramatically, climbing from approximately N288 per litre in early 2023 to over N1,100 per litre by the end of the year, and even higher in 2024.
The Resolution Effort (Tariff Review): In response to this crushing financial pressure, telcos formally requested the NCC to allow for a tariff review (sometimes up to 40% or more) to reflect the skyrocketing cost of powering their sites, which consume an estimated 40 million litres of diesel monthly. While the NCC, being a consumer-focused regulator, has generally resisted major tariff hikes, the pressure remains a constant source of tension and a threat to network investment.
2. Shift to Renewable Energy:
The most significant and ongoing resolution effort is the strategic transition away from diesel. Recognizing that annual diesel expenditure exceeds US$350 million, the government and industry are prioritizing renewable solutions.
NCC-REA Collaboration: The NCC, in collaboration with the Nigerian Rural Electrification Agency (REA), launched a joint initiative to deploy renewable energy solutions across telecom infrastructure nationwide. This collaboration focuses on solar power, battery systems, and hybrid energy to lower operating costs by an estimated 30% to 50% and enhance network resilience.
Operator Adoption: Major operators like MTN and Airtel, and tower companies like IHS Towers and ATC Nigeria, are increasingly integrating solar, lithium batteries, CNG, and LPG to power their sites, especially in rural and off-grid locations where diesel is most expensive and vulnerable to theft.
Summary:
In summary, while the recent IHS/NOGASA feud was unique in its direct and explicit threat of a national shutdown due to debt and theft allegations, the history of the Nigerian telecom sector is fundamentally defined by its continuous, expensive, and fragile reliance on diesel, a vulnerability that the ongoing shift toward renewable energy seeks to permanently resolve.
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