Airtel Nigeria Faces Rising Costs, Spends N28 Billion Monthly on Diesel

• Airtel Nigeria spends over N28 billion monthly on diesel to power its 15,000 base stations, highlighting rising operational costs in telecoms
• The company plans to reduce diesel reliance by deploying solar energy across its sites, aiming for sustainable and cost-effective operations

Airtel Nigeria has disclosed that it spends over N28 billion monthly on diesel to power its more than 15,000 base transmitter stations nationwide. This significant expense comes as telecom industry operating costs continue to rise due to Nigeria’s challenging economic environment.

At a media roundtable in Lagos on Tuesday, Airtel’s Director of Corporate Communications, Mr. Femi Adediran, revealed that the company uses 22 million liters of diesel each month to keep its sites running smoothly. “We spend N28 billion on diesel alone every month. Our sites across the country consume over 22 million liters of diesel monthly. This huge expenditure is necessary to prevent site downtime,” Adediran explained.

Rising costs have led telecom operators to push for tariff increases as they struggle to cope with the mounting expenses.

Airtel has also taken steps to address the growing need for digital infrastructure. The company has partnered with UNICEF and the federal government to provide IT facilities and internet access to 1,280 schools nationwide.

In a related development, Airtel’s Chief Technical Officer, Harmanpreet Singh Dhillon, announced that the company plans to reduce its reliance on diesel by deploying solar energy across all its sites. He also emphasized that video remains the most popular data service globally, and Airtel is set to introduce new, state-of-the-art ICT facilities to enhance its network.

Dhillon also addressed the issue of telecom infrastructure vandalism, stating that the industry has contacted major construction companies to remind them of telecom facilities’ Critical National Infrastructure (CNI) status. He warned that any damage to these facilities would result in penalties.

Airtel’s Director of Information Technology, Kemi Ariyo, shared that the company uses Artificial Intelligence (AI) to understand consumer behaviour better and tailor its products and services accordingly. She also mentioned that Airtel’s Tier 1 data center, currently under construction in Lagos, is expected to be completed by 2027. The new facility aims to improve data services and boost the economy.

Meanwhile, Airtel’s Marketing Director, Ismail Adeshina, confirmed that the company’s 5G rollout is progressing well and will be completed nationwide soon.