Nigeria’s largest telecommunications provider, MTN, is currently facing a storm of operational and financial challenges as prolonged network disruptions in Abuja and other parts of the country intensify concerns about the company’s long-term stability.
Over the past week, thousands of subscribers in the Federal Capital Territory have reported difficulty making calls, connecting to the internet, or accessing mobile banking services.
The Nigerian Communications Commission (NCC) confirmed that the disruptions stemmed from a diesel supply crisis affecting power to telecom base stations operated by IHS Nigeria Limited, one of the nation’s major infrastructure providers.
In a statement released on Friday, the NCC explained that the poor quality of service was not limited to MTN alone but also affected other networks that depend on IHS facilities for connectivity.
“The Commission is aware of the degradation in network quality within the FCT and neighbouring states. Investigations revealed that disruptions in diesel supply to some critical sites caused power failures and intermittent connectivity issues,” the statement read.
The regulator assured Nigerians that it is working with telecom operators, power providers, and the Ministry of Petroleum Resources to ensure diesel delivery resumes immediately.
“We are engaging relevant stakeholders to restore services and prevent future recurrence,” the NCC added.
However, the situation has rekindled fears about the economic survival of MTN Nigeria, which has recently warned that its business model is becoming unsustainable due to rising operational costs, currency devaluation, and an outdated tariff structure.
MTN’s Chief Executive Officer, Karl Toriola, had earlier cautioned that without an upward review of tariffs, telecom operators could face severe financial distress.
“The industry cannot continue to operate under the current pricing model. The naira depreciation and high energy costs are eroding margins and threatening continuity,” Toriola said during a recent industry conference in Lagos.
Experts disclosed that the latest disruptions may further strain the company’s finances, especially as it struggles to maintain over 77 million active subscribers while grappling with inflationary pressures and regulatory bottlenecks.
A telecom communication expert in Kaduna, Mustapha Bello said the Abuja incident reflects deeper structural problems in the telecommunications sector.
“Powering thousands of base stations daily requires millions of litres of diesel. When supply chains collapse, the entire network feels it. This is not just MTN’s problem; it’s a national infrastructure issue,” Bello stated.
Meanwhile, frustrated customers have taken to social media to express anger over the service breakdown, with many demanding compensation and improved communication from the company.
Some users have also reported prolonged downtime on MTN’s FiberX broadband service, particularly in urban areas of Abuja.
In response, MTN’s public relations team issued an apology, assuring subscribers that technical teams are “working around the clock to restore full service” and that customers will receive updates as the situation improves.
Meanwhile, telecom industry observers believe the Abuja disruption highlights Nigeria’s fragile telecom infrastructure, which is heavily dependent on fossil fuels to power its towers.
They warn that unless the sector transitions toward more sustainable energy sources and cost-reflective tariffs, operators like MTN may continue to battle for survival in Africa’s largest telecom market.
For now, while service restoration efforts continue, the incident has once again exposed the urgent need for policy reforms, stable power supply, and improved sector governance to safeguard the future of Nigeria’s telecommunications industry.