Telecoms stakeholders have cautioned that many Mobile Virtual Network Operators (MVNOs) in Nigeria could struggle to survive unless they address infrastructure gaps, target niche markets, and adapt to local realities.
The warning came during the sixth edition of the Telecoms Sector Sustainability Forum (TSSF), organised by Business Remarks in Lagos on Tuesday.
According to the stakeholders, securing a license from the Nigerian Communications Commission (NCC) is not enough to ensure survival in a market dominated by major Mobile Network Operators (MNOs) like MTN, Airtel, Glo and T2.
Speaking on a Panel Session that discussed the topic, “Unlocking Nigeria’s MVNO Potential: Status, Trends, Investment, And Future Prospects” enumerated the gains of having MVNOs to complement the services of Mobile Network Operators (MNOs) and the challenges they may face, while also reeling out options for sustenance and survival.
In his position, Director of USK Mobile, Chidi Ajuzie, , while noting that none of the over 40 licensed operators have fully launched services, projected that in the next 5 to 6 years, most of them will sign up for mergers, while half of them will not be able to launch due to unpreparedness for the challenges in the industry.
Director at ipNX, Olusola Teniola, however cautioned that only serious-minded, service-ready MVNOs will survive, and warned some of the companies that was just interested in obtaining the licence to stay away from the market.
He cautioned against adopting foreign business models without considering Nigeria’s unique environment. “In some villages, people still travel by canoe or horse for hours to access basic services. If your business model doesn’t account for that, it will fail,” Teniola said.
He urged MVNOs to focus on the bottom of the pyramid, where millions lack basic connectivity, rather than competing for urban smartphone users.
Teniola also warned that failure to strengthen indigenous companies could lead to more profits leaving Nigeria through foreign-owned operators, emphasizing the need for policies to protect data sovereignty and foster local innovation.
“Licenses are not cash cows. Too many people think that once you get a license, the money will start rolling in. The truth is, you must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” Ajuzie said.
Ajuzie pointed out that smaller operators, particularly those in Tier 4 and Tier 5 categories, face significant financial hurdles in building their own infrastructure to support capacity.
However, he sees this as an opportunity for innovation, urging MVNOs to target niche markets such as youth, migrant workers, or fintech services, as seen in successful models in South Africa and India.
In his speech, the Director, Licencing & Authorisation at NCC, who represented the Executive Vice Chairman, Aminu Maida, spoke on the need for MNOs to partner MVNOs in the quest to expand the market. Doing this, he said, will also fulfill the regulator requirements, while also driving the margins curve.
President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, advised MNOs to stay focused on their core services.
“The MNOs already provide enterprise services, internet, and fintech. MVNOs must find gaps and focus on those,” Emoekpere said.
He cited Kenya’s M-Pesa, which revolutionized payments by targeting rural and low-income users, as a model for local innovation.
Emoekpere suggested that MVNOs could capitalize on Nigeria’s underserved rural areas, where millions lack access to reliable telecom and financial services. “Something as simple as a low-data package for POS machines in rural areas could be a game-changer,” he added.
Olusola Teniola, director, IPNX,
The stakeholders said while MVNOs have the potential to expand Nigeria’s telecom sector and increase consumer choice, their survival hinges on strategic planning, niche targeting, and a focus on rural connectivity.
Without urgent action to address infrastructure challenges and adapt to local needs, many MVNOs risk disappearing before they can establish a foothold in Nigeria’s competitive telecom landscape.
