The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has said telecommunication companies spend 35 percent of their operating expenses on diesel due to the unreliable electricity supply in Nigeria.

According to industry estimates, telecom operators use an average of 40 million liters of diesel per month to power their sites. The price of diesel jumped to N1,406.05 per liter in August 2024, representing a 64.58 percent increase from N854.32 per liter in August 2023, according to the National Bureau of Statistics (NBS).

This implies that the cost of powering Nigeria’s communication infrastructure surged from N34.17 billion in August 2023 to N56.24 billion in August 2024.

Gbenga Adebayo, President of ALTON, confirmed the current diesel consumption, stating, “It will be over that now.” According to Harmanpreet Dhillon, Airtel Nigeria’s chief technical officer, the telco spent N28 billion on diesel in May 2024.

During a media roundtable, Dhillon said that the company was exploring hybrid solutions—lithium batteries and solar—to lower its energy bill.

McKinsey recently noted that companies could save up to 30 percent on energy costs by adopting renewable energy solutions and other technologies.

“The biggest constraint in the telecom industry is high energy cost. If the government had continued to fulfill its part of the bargain it made in the early 2,000s to provide 18 hours of electricity, the heavy logistics and the capital we spend today from powering sites would not be there,” said Adebayo of ALTON.

Nokia announced a strategic partnership with Zain Iraq to upgrade its telecom operator network in the south of Iraq.

The three-year deal marks Nokia’s first entry into the microwave (MW) business with Zain Iraq, enhancing network capacity and modernizing the infrastructure to support future growth and increased traffic demand.

The deployment will begin immediately, with a focus on optimizing network performance and ensuring scalability to accommodate future growth. Nokia’s solutions will help Zain Iraq to expand the network capacity and enhance customer experience while paving the way for future innovations in the region.

Zain Iraq has been experiencing increasing demand for its data services and the expansion is necessary to provide the best service to its customers. Nokia will implement its state-of-the-art microwave technology, including the latest E-band solutions, to upgrade Zain Iraq’s MW backbone.

This upgrade will increase network capacity and prepare the network for the anticipated data surge driven by rising customer usage.

This deal involves swapping out competitor equipment and introducing Nokia’s high-capacity microwave solutions. Central to this deployment is the UBT-T XP version, which offers the highest transmit power in the market.

This technology reduces antenna sizes and tower load, delivering significant capital expenditure (CAPEX) and operational expenditure (OPEX) savings.

Mikko Lavanti, Senior Vice President of Mobile Networks at Nokia MEA, said:”This deal underscores our strong local capabilities and expertise. By deploying our advanced microwave solutions, Zain Iraq will benefit from an optimized network that is ready to handle the demands of the future, including meeting the needs of its growing customer base.”

Emre Gurkan, CEO of Zain Iraq, said: “Our partnership with Nokia enables us to overcome capacity limitations and modernize our network infrastructure. With Nokia’s advanced microwave technology and E-band solutions, we are not only resolving current challenges but also future-proofing our network for future growth.”