Joy Agwunobi
Concerns are mounting over the viability of Nigeria’s newly licensed Mobile Virtual Network Operators (MVNOs), with industry stakeholders warning that up to half of the more than 40 operators could collapse within the next five years if they fail to adapt to market realities.
The warning came at the sixth edition of the Telecoms Sector Sustainability Forum, where experts highlighted the gap between licensing and actual service rollout. Although the Nigerian Communications Commission (NCC) has issued licences to 43 MVNOs, only a handful have fully launched operations.
Chidi Ajuzie, director of USK Mobile, cautioned that licences alone are not a guarantee of success. He stressed that operators must make strategic investments in infrastructure, tailor their offerings to underserved segments, and innovate to survive.
“Too many people think that once you get a licence, the money will start rolling in,” Ajuzie said. “Without infrastructure and innovation, many MVNOs will die out quickly.”
He added that smaller operators, particularly those in lower licence tiers, face severe financial pressures because they are expected to build parts of their own infrastructure. Still, he noted that this challenge also opens space for creative business models that could set successful MVNOs apart from their peers.
Other stakeholders at the forum urged Nigerian MVNOs to resist the temptation of competing head-on with the dominant Mobile Network Operators (MNOs). Instead, they called on virtual operators to define niche markets, citing lessons from countries such as South Africa and India, where MVNOs have thrived by targeting segments like youth, migrant workers, and fintech-driven services.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), explained that the NCC introduced multiple MVNO licence categories precisely to liberalise the market and expand consumer choice. However, he warned that sustainability would only be possible if operators differentiated themselves in a sector already dominated by MNOs offering internet, enterprise solutions, and fintech services.
He pointed to Kenya’s M-Pesa as a successful example of telecom-enabled innovation that redefined financial inclusion for rural and low-income communities. For Nigeria, he argued, opportunities lie in underserved areas, such as rural communities where millions remain excluded from reliable telecom and financial services.
“Designing a low-data package for POS machines in rural areas could be a game-changer,” Emoekpere said. “These terminals do not need broadband; a simple 2G network can handle them.”
Adding his perspective, Olusola Teniola, a director at IPNX, cautioned against copying European and American MVNO models without accounting for Nigeria’s unique market conditions. He stressed that affordability, rural connectivity, and infrastructure deficits must sit at the heart of any strategy.
“The biggest market is not the flashy smartphone users in Lagos. The biggest market is at the bottom of the pyramid,” Teniola said, warning also that over-reliance on foreign-owned operators could trigger capital flight and stifle local innovation.
As Nigeria’s MVNO market begins to take shape, the stakeholders highlighted that only operators that carve out niches, adapt to local realities, and innovate beyond traditional telecom services will have a chance of survival in the next five years.
