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How MVNOs Can Unlock Opportunities in Nigeria’s Telecom Amid Challenges

 By Elvis Eromosele

Phenomenal is one word that has been used to describe the growth of the Nigerian telecom sector. The rise from under half a million lines to 165 million in 24 years is truly phenomenal by any standard. It’s not surprising therefore, that the question on the lips of many today is whether the Nigerian telecom sector has reached its limit.

Proponents of Mobile Virtual Network Operators (MVNOs) say there’s still room to grow. This was the central focus of the Telecoms Sector Sustainability Forum (TSSF 6.0) in Lagos, themed “Unlocking Nigeria’s Mobile Virtual Network Operators (MVNOs) Potential: Status, Trends, Investment, and Future Prospects.”

With a teledensity of 79.65 per cent and broadband penetration nearing 50 per cent, telecom remains one of Nigeria’s most dynamic sectors, consistently attracting billions in foreign direct investment and driving digital transformation. Yet, challenges persist, including affordability, rural coverage, and limited service diversity. These are the gaps MVNOs are designed to bridge.

Unlike traditional Mobile Network Operators (MNOs) such as MTN, Airtel, Globacom, and 9mobile, MVNOs lease network capacity and focus on innovation, niche segments, and pricing. Globally, MVNOs have been game-changers.

The global MVNO market size in 2022 was around $78 billion and was expected to grow by gigantic margins by 2030 to over $149 billion. For Nigeria, the hope is that MVNOs will fuel competition, increase penetration, and open up new opportunities.

Experts insist that success for MVNO depends very much on regulation, partnership, and innovation.

South Africa is the top country in Africa with a regulatory system encouraging differentiated propositions, superior customer experience, and service bundling. MVNOs in Kenya have evolved from resale to spearhead technology-focused services for a digitally literate population.

Argentina has mandated open networks and infrastructure sharing, which allows new entrants to compete more straightforwardly. In Thailand, however, the MVNO sector failed because of lax enforcement, as MNOs were able to effectively exclude new entrants despite regulation.

The moral is obvious: MVNOs fail without regulatory enforcement and reasonable wholesale terms.

Since 2023, the Nigeria Communications Commission (NCC) has licensed 46 MVNOs on five levels, ranging from simple resellers to full enablers with greater control.

The early entrants have been encouraging. Vitel Wireless was the first MVNO to be assigned a dedicated numbering range (0712) and achieve full interconnectivity with all the major MNOs. EmoSIM introduced Nigeria’s very first travel eSIM for international travellers.

These are good signs, but issues exist. Some licensees mention a delay in negotiation of the agreement for wholesale and interconnection with major operators, which is hindering rollout. Economic headwinds, primarily FX unification and the removal of fuel subsidies, have also tested new entrants.

However, MNOs have spent over $1 billion investing in network rollout, which leaves the way open for partnership with MVNOs to leverage idle capacity and conquer underserved niches.

The reality check: MVNOs are not just competitors; they are enablers of digital inclusion. They are the new agents of growth. They work by:

Plugging rural gaps: They can provide services to unprofitable segments where MNOs are not willing to invest.

Niche targeting: Whether students or SMEs, migrants or religious minorities, MVNOs are able to create tailored products.

Low-cost offerings: With rising competition, MVNOs lower prices and extend consumer choice.

Innovating services: MVNOs are best suited to bolt-on mobile money, e-learning, telemedicine, IoT, and gaming solutions.

Spurring investment and employment: They attract new capital, stimulate employment, and build capacity in customer care, network management, and digital solutions.

In a country with one of the world’s youngest and most technologically adopting populations, these opportunities cannot be ignored.

For Nigeria’s MVNO model to take hold, three imperatives become clear:

Regulatory Enforcement: NCC should not only set regulations but also impose wholesale obligations on MNOs. Strict regulation will discourage anti-competitive tendencies.

Partnership Mindset: MVNOs must be viewed as partners by MNOs. Joint ventures enable them to reach new customer segments, capitalise on spare capacity, and respond to regulatory pressure.

Brand Differentiation: MVNOs must fight hard to build consumer trust and brand recognition in markets controlled by incumbent behemoths. They must survive on unique, sharp value propositions.

The MVNO entry appears like a game-changer for Nigeria’s telecommunications industry. With more than 46 licensees, the potential for extending access, lowering prices, and spurring innovation is immense. Potential does not suffice, however.

Without regulatory power, infrastructure sharing, and genuine partnership, Nigeria will risk replicating Thailand’s mistakes rather than Argentina’s successes.

In a speech at the forum, Bukola Olanrewaju, CEO, Business Remarks, convener of the TSSF 6.0 summit, stated that: “Nigeria can create a place where MVNOs are not only there but thriving, stimulating innovation and delivering the advantages of digital connectivity for all.”

Nigeria faces a clear choice: treat MVNOs as an afterthought or embrace them as catalysts for the next wave of telecom growth. The nation’s response will determine the future of digital inclusion, affordability, and innovation. 

Elvis Eromosele, a corporate communications expert and sustainability activist, authored this through [email protected].

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