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NCC, REA move to cut $350 million annual diesel cost for Nigerian telecom operators 

NCC, REA move to cut $350 million annual diesel cost for Nigerian telecom operators 

The Nigerian Communications Commission (NCC) and Rural Electrification Agency (REA) have teamed up to develop an initiative that will reduce the $350 million annual spending on diesel by telecom operators in Nigeria.

To that end, the two agencies have inaugurated what they called NCC–REA Collaboration Committee, aimed at deploying renewable energy solutions to power telecom infrastructure across the country.

According to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation, telecom operators in Nigeria consume more than 40 million litres of diesel every month, costing them over $350 million annually.

While details of how the Committee will work with the telecom operators are not provided in a statement issued by the NCC after the inauguration, the initiative will be targeting telecom infrastructure in rural areas.

National priorities Speaking during the inauguration of the Committee, the Executive Vice Chairman and CEO of NCC, Dr. Aminu Maida described the partnership as a “timely and strategic alignment of national priorities,” focused on providing reliable and sustainable power to support telecom services, particularly in rural and underserved areas.

“Whether it is powering a base station or enabling a child to access digital learning, this partnership has the potential to transform realities and bring opportunity closer to the people,” Dr. Maida said.

“This initiative is more than infrastructure. It is about driving inclusion, bridging inequalities and creating the conditions for shared prosperity,” he added.

He noted that the collaboration supports President Bola Ahmed Tinubu’s Renewed Hope Agenda by fostering digital and energy inclusion across Nigeria.The NCC boss charged members of the committee to pursue the initiative with innovation, clarity, and a commitment to delivering measurable results.Renewable energy and digital connectivity  In his remarks, REA’s MD, Abba Aliyu, reaffirmed the agency’s dedication to the project and emphasized the transformative potential of combining renewable energy infrastructure with digital connectivity.

He noted that collaboration offers a pathway to bring sustainable development to millions living beyond the reach of traditional infrastructure.

The NCC–REA Collaboration Committee will focus on: 

Deploying renewable energy to power telecom sites.Sharing geospatial data for improved infrastructure planning.Aligning funding frameworks to support joint initiatives.Tracking socio-economic impact through defined performance metrics.The committee is expected to serve as a model for inter-agency collaboration, contributing to Nigeria’s National Broadband Plan and broader sustainable development goals.

What you should know Worried by the high level of dependence on diesel-powered generators by the telecom operators in the country, the NCC had in 2023 announced plans to come up with polices that would encourage all telecom operators to adopt clean and sustainable energy sources, to reduce their carbon footprint.Meanwhile, some operators have been embracing renewable energy to cut costs. Not long ago, MTN Nigeria declared that it had been able to has been able to lower its energy costs by over N570 million through the use of gas generators.Last September, Airtel Nigeria also announced that it was deploying alternative solutions to power its base stations across the country as part of measures to cut the skyrocketing monthly expenses on diesel.

Samson Akintaro Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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