Nigeria’s telecom industry is losing up to N35.4 billion a year to damaged fibre cables, lost revenue and network disruptions, while high diesel costs are putting further pressure on operators and threatening the reliability of the country’s digital economy.
Industry estimates put the total annual cost of fibre-related damage at between N27 billion and N35.4 billion, including repair expenses and revenue lost during service disruptions. Daily Trust reported on 27 December 2024 that the industry lost at least N35.4 billion, or $23 million, to fibre cuts in 2023.
The problem has continued into 2026. The Nigerian Communications Commission (NCC) said on 11 August 2026 that more than 5,000 fibre-optic cable cuts were recorded across Nigeria in the first six months of the year. NCC Executive Vice Chairman Dr Aminu Maida identified road construction, excavation and other civil works as major causes.
The disruption is affecting the wider telecom industry, not just one operator. NCC records showed 245 major network outages in May 2026, with 183, or 75 per cent, caused by fibre cuts, BusinessDay reported on 2 June 2026. The outages involved telecom operators and internet service providers across the country.
MTN Nigeria and Airtel Nigeria have both suffered fibre and power-related disruptions, while other providers have also been affected. MTN recorded 9,218 fibre cuts in 2025, but that figure represents the experience of one operator and should not be treated as the industry total.
Power is another major cost. The Africa Finance Corporation (AFC) said in its State of Africa’s Infrastructure Report 2025 that Nigerian telecom operators consume more than 40 million litres of diesel every month, costing more than $350 million annually. The Guardian reported the finding on 10 June 2025.
The dependence on diesel is driven by unreliable electricity supply, forcing operators to use generators and other backup systems to keep network sites running.
The financial pressure comes as the industry continues to invest heavily in infrastructure. BusinessDay reported on 2 June 2026, citing NCC records, that telecom operators invested more than N2.1 trillion in network expansion and modernisation in 2025.
The Federal Government has designated telecom infrastructure as Critical National Information Infrastructure, while the NCC has established a committee to improve the protection of fibre networks.
Industry stakeholders are calling for better coordination between telecom operators and road construction agencies, stronger action against vandalism and greater use of alternative energy.
For Nigeria’s digital economy, protecting existing telecom infrastructure is becoming as important as building new networks.
