NCC, IHS Partner to Resolve Diesel Supply Dispute

Nigeria’s telecommunications sector faces a looming crisis as the Nigerian Communications Commission (NCC) and tower infrastructure giant IHS Towers work to resolve a diesel supply blockade by oil sector unions, a situation that could disrupt mobile phone services for millions of users across the country.

The dispute erupted after members of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) blocked access to key diesel depots in Lagos, Kaduna, and Koko in Delta State. The blockade has hindered fuel distribution to over 16,000 telecom base stations operated by IHS Towers, which provides critical infrastructure for major mobile operators including MTN, Airtel, Globacom, and 9mobile.



The unions’ action follows allegations by IHS that two companies linked to NOGASA were involved in diesel theft from telecom supply chains. While the matter is currently before the courts, NOGASA members have halted deliveries, effectively putting Nigeria’s telecom connectivity at risk.

IHS, in a statement to Saturday PUNCH, confirmed that it has escalated the matter to the NCC and relevant security agencies.

“We have made formal reports to the Nigerian Communications Commission and security agencies, and we are working closely with them towards a resolution of the ongoing matter,” the company said.



Telecom operators in Nigeria rely heavily on diesel-powered generators to keep their towers operational due to unreliable grid power supply. Any prolonged fuel disruption could lead to service blackouts, affecting voice, data, and mobile money services in Africa’s largest telecom market, valued at over $75 billion.

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), warned that the blockade could have serious economic and national security implications.

“While ALTON does not interfere in disputes between members and third parties, the wider impact on critical national infrastructure and public safety is a grave concern,” he stated.

According to industry data, Nigeria’s mobile industry consumes more than 40 million litres of diesel monthly, with annual fuel spending exceeding $350 million. Costs are even higher—about 37% more—for rural and off-grid sites where grid electricity is non-existent.

Under Nigerian law, telecom infrastructure is classified as Critical National Information Infrastructure, meaning deliberate interference could attract heavy penalties, including jail terms.


In response to high fuel costs and environmental concerns, major operators such as MTN and Airtel have begun deploying hybrid energy systems that combine solar power and lithium-ion battery storage. The NCC and GSMA project that transitioning to renewables could cut operating costs by 30% to 50% over time.

These green energy initiatives, however, are still in the early stages, and diesel remains the primary power source for most of Nigeria’s telecom infrastructure. This makes disputes like the current one potentially catastrophic for service continuity.



Industry watchers say the NCC may push for a negotiated settlement to prevent further escalation. Security agencies are also monitoring the situation to ensure uninterrupted supply to telecom facilities.

For now, IHS Towers has reiterated its commitment to keeping Nigeria’s mobile networks operational.

“Our priority remains ensuring network uptime for our customers and supporting Nigeria’s digital economy,” the company stressed.



The outcome of this dispute will be closely watched by both the telecom and energy sectors, given its implications for infrastructure reliability, business continuity, and investor confidence in Nigeria’s critical industries.