Nigeria’s telecom operators face mounting costs from unreliable power, fibre damage, vandalism and security challenges, threatening network reliability and profitability despite growing demand for connectivity, write JUSTICE OKAMGBA
Nigeria’s telecommunications industry has become one of the most important parts of the country’s economy, connecting millions of people to banking, commerce, education, healthcare and other essential services. Behind that connectivity, however, operators face an operating environment that makes it considerably more expensive to build and maintain networks than it would be in many developed markets.
For operators in a sector valued at N75tn, the cost of running their network goes far beyond investment in spectrum, towers and fibre. Telcos still have to contend with unreliable electricity, diesel costs, vandalism, fibre cuts, security expenses and the repeated replacement and relocation of damaged infrastructure.
Chief Executive Officer of MTN Nigeria, Karl Toriola, said these challenges have created a significantly higher operating cost environment for telecommunications companies in Nigeria.
“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 in a chat with 2026 MTN MIP fellows at the weekend in Lagos.
