Diesel Dispute Threatens Nigeria’s Mobile Networks as Unions, HIS Towers Lock Horns
Nigeria’s telecom regulator and IHS Towers are working to end a diesel supply blockade by oil industry unions, a dispute that could interrupt mobile services for millions across the country.
A fresh confrontation between Nigeria’s oil sector unions and one of the country’s biggest telecom infrastructure providers has raised alarms over possible disruptions to mobile phone services for millions of people.
The conflict centres on a diesel supply blockade launched this week by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA). The unions, in protest, have sealed off access to key diesel depots in Lagos, Kaduna, and Koko in Delta State—fuel hubs critical to powering thousands of base stations across the country.
HIS Towers, which operates more than 16,000 telecom sites for network giants MTN, Airtel, Globacom, and 9mobile, says the blockade is tied to allegations of diesel theft involving companies linked to NOGASA. While the dispute is already before the courts, the company has reported the matter to the Nigerian Communications Commission (NCC) and security agencies, seeking a mediated resolution.
For Nigeria’s telecom industry, the stakes are high. With the national grid unable to provide consistent electricity, operators rely heavily on diesel-powered generators to keep networks running. Industry data shows that more than 40 million litres of diesel are consumed each month, costing over $350 million annually. For rural and off-grid locations, where generators are the sole power source, the expense is even higher—around 37 per cent more than urban sites.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has urged both sides to settle the matter through legal and contractual channels rather than through actions that could impair critical national infrastructure. ALTON Chairman Gbenga Adebayo warned that prolonged service outages could carry significant economic and security risks for Africa’s largest economy.
Under Nigerian law, telecom sites are classified as Critical National Information Infrastructure, meaning deliberate interference with their operations could attract severe legal penalties. HIS Towers, for its part, has pledged to “keep Nigeria’s critical information infrastructure running” and maintain high network uptime despite the supply disruptions.
Meanwhile, the crisis is drawing renewed attention to the industry’s search for cleaner and cheaper energy alternatives. Operators like MTN and Airtel have been rolling out hybrid energy solutions, combining solar power and lithium batteries, to reduce reliance on diesel. According to the NCC and the GSM Association, adopting renewable systems could cut operational costs by as much as 50 per cent while also reducing carbon emissions.
If unresolved, the diesel standoff risks not just an inconvenience for mobile phone users but a blow to Nigeria’s $75 billion telecom market—an industry that underpins banking, commerce, security, and everyday communication across the country.