MTN Nigeria says diesel over ₦2,000/litre threatens profits as it pushes gas, solar

MTN Nigeria warns that if diesel prices stay above or rise beyond ₦2,000 per litre, its profits could come under pressure despite saving ₦8.1 billion in 2025 by increasing gas-powered electricity. Diesel still makes up 58.1% of its energy mix, far outweighing gas (23.6%) and grid power (18.0%), with renewables contributing only 0.05%. The operator consumed over 1 million gigajoules of energy in 2025—about 277 million kWh—equivalent to powering 25,000–30,000 Nigerian homes yearly. Scope 1 and 2 emissions rose 4.8% to 106,588 tonnes of CO₂ equivalent, driven by network expansion and grid constraints that increase diesel reliance. In Q1 2026, MTN nearly doubled capital expenditure to ₦390.3 billion, accelerating solar-hybrid and gas-powered deployments, though gas supply shortages left 16 of Nigeria’s 33 power plants idle early this year. While data revenue grew 56.2% this quarter, each gigabyte now costs more to deliver, squeezing margins; the company estimates a 2.0% margin decline—about ₦140 billion at current revenue levels—if energy costs outpace data gains. Energy efficiency measures like high‑efficiency cooling added another ₦352.6 million in savings, and solar‑powered rural sites expanded by 18%. With operating expenses of ₦1.39 trillion, the ₦8.1bn gas savings remain modest relative to the overall cost burden. Will MTN’s shift to gas and solar be enough to offset diesel costs, or will consumers face higher data prices as the company manages this energy transition?

SOURCE: https://techcabal.com/2026/05/04/mtn-nigeria-saves-5-9m-on-gas-diesel-still-dominates/