MTN Nigeria turns to gas as diesel costs rise

MTN Nigeria is expanding its use of gas-powered electricity as rising diesel costs threaten to squeeze profits and raise the cost of delivering mobile data across Nigeria.

In its latest sustainability report, the telecom operator said it saved ₦8.1 billion in 2025 by increasing its use of gas. Still, diesel remained its main energy source, accounting for more than 58% of total consumption.

The figures show a growing challenge for telecom operators in Nigeria, where unreliable power supply forces companies to run large networks on generators.

MTN said it consumed more than one million gigajoules of energy in 2025. That is roughly equal to 277 million kilowatt-hours, enough to power up to 30,000 Nigerian homes annually.

As internet use rises, energy costs are becoming harder to absorb. MTN warned that if diesel prices remain above ₦2,000 per litre, margins could decline by about 2%, or roughly ₦140 billion at current revenue levels.

The pressure comes even as data demand continues to grow. MTN said data revenue rose 56.2% in the first quarter, but each gigabyte now costs more to deliver because of rising fuel and infrastructure expenses.

The company nearly doubled capital spending in the quarter. Capital expenditure rose 92.8% year-on-year to ₦390.3 billion as MTN accelerated deployment of gas-powered and solar-hybrid systems.

Nigeria’s large natural gas reserves make gas an attractive alternative. However, supply shortages remain a major problem. Several power plants operated below capacity earlier this year because of limited gas supply, raising concerns about long-term reliability.

Renewables still make up a tiny share of MTN’s energy mix. Solar contributed just 0.05% of total consumption in 2025.

Chief Executive Karl Toriola said greenhouse gas emissions rose 4.8% last year to about 106,588 tonnes of carbon dioxide equivalent. He linked the increase to network expansion and heavier reliance on diesel generators.

The company’s biggest energy consumers were data centres and telecom towers, which together accounted for nearly 70% of electricity use.

MTN also introduced energy-saving measures, including more efficient cooling systems and inverter technology. It said those efforts generated an additional ₦352.6 million in savings and helped expand solar-powered rural sites.