NCC, IHS Collaborate to End Diesel Supply Dispute

The Nigerian Communications Commission (NCC) and IHS Towers have initiated joint efforts to settle an ongoing disagreement over diesel supply, a dispute that has raised concerns about potential disruptions in the country’s telecommunications infrastructure. Both parties confirmed over the weekend that constructive discussions are underway to address the issues and ensure continuity in network operations across the nation.

The dispute reportedly centres on contractual and operational differences related to the provision and pricing of diesel used to power telecom base stations. With Nigeria’s telecom infrastructure heavily dependent on diesel generators due to unreliable grid electricity, any prolonged disagreement could impact service quality, especially in rural and underserved areas.

In a joint statement, NCC and IHS stressed their commitment to a swift and amicable resolution, noting that uninterrupted telecom services are critical to the nation’s economy and daily life. They assured subscribers and industry stakeholders that network availability remains stable and that contingency measures have been implemented to prevent service disruptions while negotiations continue.

The NCC, as the industry regulator, is playing a mediatory role to ensure that the dispute does not escalate into service outages. The Commission has emphasised the importance of maintaining robust communication channels between infrastructure providers and telecom operators, particularly in light of the strategic role the sector plays in national development and security.

Sources familiar with the matter disclosed that discussions involve aligning on cost structures, reviewing supply agreements, and addressing logistical challenges that have occasionally slowed diesel delivery to certain sites. Both parties are reportedly open to revising terms to reflect current market realities, including fluctuations in fuel prices and transportation costs.

Industry observers point out that the diesel supply row underscores broader challenges in Nigeria’s telecom sector, where high operational costs—largely driven by energy expenses—continue to pressure operators’ margins. Powering base stations accounts for a significant portion of network operating costs, making efficient and reliable fuel supply essential.

The NCC has reiterated that maintaining consistent service delivery is a regulatory priority and that it will continue to engage with all stakeholders to avoid any scenario that could undermine public access to telecommunications. It also encouraged infrastructure providers to explore more sustainable energy options to reduce dependence on diesel and improve long-term operational resilience.

For its part, IHS Towers, which manages thousands of telecom sites across Nigeria, has reaffirmed its dedication to supporting network operators with dependable infrastructure. The company stated that it values its partnership with regulators and operators and is committed to resolving the present disagreement in a way that strengthens the sector’s stability.

Telecom operators have welcomed the conciliatory approach, noting that any disruption to diesel supply could have ripple effects on call quality, internet connectivity, and emergency communications. They have also expressed optimism that ongoing talks will lead to improved supply chain arrangements and cost efficiencies.

Analysts believe the resolution of this dispute could serve as a catalyst for broader reforms in telecom energy management, potentially accelerating investments in solar and hybrid power systems to cut reliance on diesel. While such solutions require upfront capital, they promise lower operating costs and greater environmental sustainability in the long term.

The NCC and IHS have pledged to provide regular updates on the progress of their talks, underscoring the importance of transparency in maintaining public and industry confidence. Until a final agreement is reached, both sides have assured that measures are in place to keep all base stations operational.

With over 220 million active mobile subscriptions in Nigeria, the smooth functioning of telecom networks is critical for economic activity, digital transactions, and social connectivity. The ongoing collaboration between NCC and IHS aims to protect these vital services from being compromised, while also addressing the operational and cost challenges that triggered the dispute.

In the meantime, stakeholders and subscribers alike are watching closely, hopeful that the resolution process will not only end the current diesel supply row but also pave the way for more sustainable and cost-effective energy solutions in Nigeria’s telecommunications sector.