The global oil market‘s volatility and ongoing supply chain disruptions have placed unprecedented pressure on various sectors of the economy, including telecommunications.

While acknowledging the challenge, telcos under the Association of Licensed Telecom Operators of Nigeria (ALTON) said members are moving aggressively to mitigate external shocks and safeguard the quality of service (QoS) that customers depend on.

ALTON Chairman, Gbenga Adebayo, who spoke with The Guardian yesterday, noted that while the recent surge in fuel prices has significantly increased the cost of service delivery, “we are taking deliberate actions to absorb the overheads”.

“Our priority remains clear: maintaining a seamless user experience while navigating an unpredictable economic landscape. We continue to monitor global trends closely, remaining optimistic for a return to market stability in the near term,” he said.

The ongoing conflict in the Middle East has significantly affected the telecommunications sector in the region, causing direct infrastructure damage, major service disruptions, and rising operational costs worldwide. The crisis has hindered the region’s ambitions to become a global centre for AI and data, with damage to data centres and increased cybersecurity risks emerging as key challenges.

Head Regulation and PR, FibreOne, Kenny Joda, said that at a global level, the ongoing conflict has not directly disrupted telecom services. However, he said, it has created indirect pressures on the sector through rising energy costs, infrastructure concerns and supply chain disruptions.

Joda said the situation has impacted critical infrastructure in parts of the Middle East and disrupted key global energy routes, leading to increases in oil and gas prices. He said the developments have ripple effects on telecom operators globally.

According to him, for Nigeria and ISPs like FiberOne, the impact is indirect but significant.

“Higher global energy prices have translated into increased diesel costs, which is a major concern given the sector’s reliance on alternative power sources. In addition, global supply chain disruptions have led to increased costs of importing telecom equipment, with many of our suppliers adjusting prices upward.

“At FiberOne, while there has been no direct operational disruption to our network, the combined effect of rising energy costs and increased supplier pricing is creating significant cost pressures and impacting the overall cost of delivering telecom services,” he stressed.

Joda, however, noted that the increase in fuel prices is a more direct and immediate challenge for telecom operators in Nigeria.
“Telecom infrastructure – including base stations, points of presence (PoPs) and data centres – relies heavily on diesel-powered generators due to limited grid reliability. As fuel prices rise, the cost of powering and maintaining network uptime increases significantly.

“This has led to increased operating costs across the board, reduced profit margins due to higher energy, logistics, and maintenance expenses. Strain on service delivery, including network expansion, deployment timelines, and maintenance cycles,” Joda added.

The FibreOne chief said operators are experiencing increased costs from suppliers, further compounding the financial pressure on the sector.