Energy & Sustainability

Nigeria’s NCC and REA combat telco diesel costs with renewable energy plan

Nigeria’s NCC and REA combat telco diesel costs with renewable energy plan

The Nigerian Communications Commission (NCC) says it signed an MoU with the Rural Electrification Agency (REA) on Friday to deploy renewable energy for telecom infrastructure in Nigeria to bring down costs and boost reliability.

Under the MoU, the NCC and REA will partner to migrate base stations located within 1 to 2 km of existing mini-grids to renewable energy supplied through those grids.

Both organisations have previously pursued this idea independently, but will now coordinate investments through a joint implementation committee, REA executive director of technical services Umar Abdullahi told ITWeb Africa.

NCC executive commissioner for technical services Abraham Oshadami said at the signing ceremony that the initiative with REA aims to reduce dependence on diesel generators and reduce opex.

Oshadami also said the partnership will improve access to reliable electricity and telecom services, particularly in underserved communities, while ensuring future mini-grid projects support nearby telecom infrastructure.

“The base stations will remain operational even where there is no national grid supply because mini-grids can sustain connectivity in those locations,” he said. “This will significantly improve access to telecommunications services in rural communities while supporting broader socio-economic development.”

According to the ITWeb Africa report, telcos in Nigeria spent an estimated NGN860 billion (around US$630 million) on diesel in 2025 to keep networks operational amid frequent power shortages. In the first quarter of 2026, telcos spent around NGN216 billion on diesel, or around NGN72 billion per month.



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