Matthew Onocheta
Lagos – Airtel Nigeria is turning to solar energy as a cost-effective solution to power its telecom infrastructure, as rising diesel prices have pushed the company’s fuel costs to a staggering ₦28 billion, a local news outlet reported on Tuesday, citing an official.
The move towards renewable energy is part of a broader strategy to reduce operational expenses and enhance sustainability amidst Nigeria’s persistent energy challenges, according to The Punch newspaper.
The Director of Corporate Communications and Corporate Social Responsibility revealed this during a media roundtable in Lagos on Tuesday, citing the company’s records as of May.
Airtel Nigeria’s Chief Technical Officer, Harmanpreet Dhillon, said the company was exploring alternative energy options such as solar power.
This shift is aimed at addressing the challenges posed by Nigeria’s unreliable power supply, which currently forces telecom operators to rely heavily on diesel generators.
Nigeria is facing its worst economic crisis in decades, with skyrocketing inflation, a national currency in free-fall and millions of people struggling to buy food. Only two years ago Africa’s biggest economy, Nigeria is projected to drop to fourth place this year.
The pain is widespread. Unions strike to protest salaries of around $20 a month. People die in stampedes, desperate for free sacks of rice. Hospitals are overrun with women wracked by spasms from calcium deficiencies.
Although President Bola Tinubu increased the minimum wage — after strike action and months-long negotiations with labour unions — from ₦30,000 to ₦70,000, his government has increased spending for officials at a time of nationwide starvation.
For workers earning the new ₦70,000, or $43, per month minimum wage, capricious inflation and naira value have inflicted too much damage for the changes to make any difference in their lives.
The crisis is largely believed to be rooted in two major changes implemented by Mr Tinubu, elected 16 months ago: the partial removal of fuel subsidies and the floating of the currency, which together have caused major price rises.
A nation of entrepreneurs, Nigeria’s more than 200 million citizens are skilled at managing in tough circumstances, without the services states usually provide. They generate their own electricity and source their own water. They take up arms and defend their communities when the armed forces cannot. They negotiate with armed kidnappers when family members are abducted.
But right now, their resourcefulness is being stretched to the limit.
Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to about ₦1000/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.
Amid a lingering fuel scarcity and crisis, petrol is being sold for ₦855 per litre at state-owned petroleum company, NNPCL, cementing claims that the price has been reviewed upward to reflect the nation’s current foreign exchange woes and fuel landing cost hassles.
In recent weeks, the nation has suffered an acute fuel scarcity that led the few stations with fuel to sell at exorbitant prices above ₦1,000 per litre while black market prices exceeded ₦1,200.
In August, Amnesty International accused Nigerian security forces of killing at least 21 protesters during a week of economic hardship protests.
Police and other security agencies clamped down on protests after thousands of people joined rallies against government policies and the high cost of living from August 1st to 10th.
Security forces denied responsibility for deaths during the protests.
($1 = 1,613.99 naira)