The growing demand for reliable telecommunications services in Nigeria is coming with a heavy operational burden for network operators, as persistent power challenges, fibre damage, vandalism and security concerns continue to drive up costs.
Nigeria’s telecom sector, valued at about N75tn, has become a critical pillar of the economy, supporting banking, commerce, education, healthcare and a wide range of digital services. Yet, keeping millions of Nigerians connected requires operators to spend significantly more on network operations than their counterparts in countries with more reliable infrastructure and security systems.
Beyond the huge investments required for spectrum, base stations, towers and fibre networks, telecommunications companies must continually spend on alternative power, diesel, batteries, repairs, security and the replacement or relocation of damaged infrastructure.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, said the combination of these factors has created a significantly higher operating cost environment for telecom operators in Nigeria.
Speaking with the 2026 MTN MIP fellows in Lagos at the weekend, Toriola explained that electricity alone creates a major cost difference between operating a telecom site in Nigeria and one in Europe.
“If you look at a site in Europe, electricity for a site in Europe could be in the range of $200 per month. Maybe I’m wrong because sometimes I quote wrong statistics and people come and hammer me. Let us say it is $500,” Toriola said.
“At a site in Nigeria, you have to first provide one or two generators. That is CapEx. The lifespan of a generator is four to five years, so you can calculate that. Then you have to fuel those sites every single month. Then you have to have battery backup because when you have frequent outages, you want to make sure the site is not going down every single time.”
Power Costs Remain a Major Burden
Unlike operators in markets where the national grid provides relatively dependable electricity, Nigerian telecom companies have had to build alternative power arrangements into their networks.
Generators, batteries and other backup systems have therefore become essential components of network infrastructure. But these solutions come with both upfront capital expenditure and recurring operational costs, particularly because generators require regular fuelling and maintenance.
Research by the World Bank has previously highlighted the economic impact of unreliable electricity in Nigeria. Businesses increasingly depend on generators to compensate for power outages, with self-generated electricity estimated in its research to cost between six and ten times more than electricity supplied through the grid.
Toriola said the cost of keeping telecom infrastructure powered illustrates the wider challenge facing operators.
“So, it’s an exorbitant cost, just taking power alone, of running a telecommunications network compared to what it would cost you in Europe,” he said.
Fibre Cuts Add to Network Expenses
Power is not the only major cost pressure. Damage to fibre-optic infrastructure, often linked to road construction and other civil works, has also become a persistent problem for the industry.
The Nigerian Communications Commission said more than 5,000 fibre incidents were recorded in the first six months of 2026 as a result of road construction, excavation and related civil works.
According to the regulator, such incidents can disrupt essential services while imposing significant costs on telecom operators, businesses, consumers and the wider economy.
The scale of the problem has led the NCC to push for stronger coordination among road contractors, engineers, government agencies and telecommunications companies.
The commission said permanent secretaries in the Ministry of Works and the Federal Ministry of Communications, Innovation and Digital Economy had established a Fibre Optic Cable Protection Committee to develop a more coordinated approach to protecting fibre infrastructure before, during and after road construction.
The Office of the National Security Adviser has also been brought into the process, following the classification of telecommunications infrastructure as Critical National Information Infrastructure.
For telecom operators, every damaged fibre route can translate into additional capital expenditure, repair costs and potential service disruptions.
Toriola said MTN incurs substantial costs when it has to replace or relocate damaged fibre.
“It’s an extremely, extremely high cost,” he said.
Network Outages Have a Direct Revenue Impact
The financial consequences of infrastructure failures go beyond the cost of repairs. Network outages can also mean lost revenue for operators, particularly when customers are unable to use voice, data and other services.
Toriola said MTN could record a revenue increase of between 15 and 20 per cent if all network outages could be eliminated.
“If we can eliminate all the outages that we experience in the network, there will be revenue upside of somewhere in the range of 15 per cent to 20 per cent,” he said.
The estimate is significant considering that MTN Nigeria reported revenue of more than N3tn in its latest half-year results.
This suggests that network reliability is not merely an engineering or customer-service concern. It also represents a substantial commercial opportunity for telecom operators, as improved network availability could translate into higher usage and revenue.
Every outage can affect data consumption, voice traffic and enterprise connectivity, even as operators continue to bear the cost of maintaining the infrastructure.
Vandalism and Security Increase the Cost of Doing Business
Telecommunications infrastructure is also increasingly exposed to vandalism and theft, creating another layer of expense for operators.
Toriola compared the situation in Nigeria with parts of Europe, particularly highly secure Scandinavian countries, where telecom infrastructure generally requires far fewer physical security measures.
“In a site in Europe, you wouldn’t bother putting a fence around it. You wouldn’t have a security guard. You would have no losses,” he said.
In Nigeria, however, operators have to invest in fencing, security personnel and other protective measures. They must also replace equipment that is stolen or damaged and work with security agencies to protect vulnerable sites.
The designation of telecommunications infrastructure as Critical National Information Infrastructure could therefore have important implications for the sector.
Toriola said the classification would make it possible for operators to receive greater support from security agencies and ensure that telecom infrastructure receives priority protection.
He added that the designation could also help operators deal with disputes involving landlords who restrict access to telecommunications sites.
“If a landlord has an existing lease agreement with us and for some reason, and this does happen, a lease agreement for 10 years in advance, they just wake up one day and say, ‘I want more money’ and they block access to your site, we can, through security agencies, enforce access to your site to make sure the sites don’t get disrupted,” he said.
Rising Costs Complicate Tariff Debate
The mounting cost of network operations has also intensified the debate over telecommunications tariffs.
Operators have consistently argued that the cost of maintaining and expanding their networks has increased significantly because of higher energy expenses, infrastructure damage, security requirements and other operating pressures.
Toriola said these realities should be considered when comparing Nigerian telecom tariffs with those in other countries.
“In terms of the tariffs that we charge, we are the second lowest in Africa, seventh lowest in the world, despite having a much higher operating cost environment,” he said.
The situation presents a difficult balancing act for the industry. Consumers want faster, more reliable connectivity, wider broadband coverage and affordable data, while operators must generate enough revenue to fund continued investment in networks.
Protecting Telecom Infrastructure Requires Collective Action
Nigeria is simultaneously pursuing an expansion of its digital infrastructure, including fibre networks aimed at improving broadband access and supporting the country's growing digital economy.
However, expanding infrastructure will not completely solve the connectivity challenge if existing and new infrastructure remains vulnerable to unreliable electricity, accidental fibre cuts, vandalism and inadequate security.
Toriola said communities also have an important role to play in protecting telecommunications infrastructure.
While acknowledging that security challenges are partly connected to economic hardship, he said local communities should understand that damage to telecom infrastructure ultimately affects the same people who depend on those networks.
“Security is always local,” he said. “The consciousness in the local communities that if you allow criminal elements to attack telecom infrastructure, it affects your own quality of service every day.”
According to him, communities should view telecom infrastructure as an asset that provides essential services to them, rather than simply as property belonging to telecommunications companies.
The NCC has also introduced requirements for operators to report network outages lasting more than 30 minutes. The measure is intended to provide regulators, journalists and the public with greater visibility into the causes of service disruptions.
Toriola urged consumers to consider possible infrastructure and environmental factors when services go down rather than immediately blaming the network operator.
“If you can’t call, the first thing, don’t abuse MTN first,” he said. “Check within your environment. Did someone cut a fibre? Did the landlord shut down, maybe denying access to the site? Did the diesel go off because of a lack of diesel supply or something in the environment?”
As Nigeria's reliance on digital connectivity continues to deepen, the ability of telecom operators to control these operating costs will become increasingly important. Reliable electricity, protection of fibre infrastructure, stronger security and cooperation among communities, government agencies and industry players could ultimately determine how efficiently operators can expand networks while keeping services dependable and affordable.