Two years after Nigeria’s ambitious 2023 licensing of 46 Mobile Virtual Network Operators (MVNOs), only Vitel Wireless and EmoSIM are operational by August 2025, BusinessDay findings have revealed.
In 2023, Nigeria’s telecommunications sector was poised for a transformative leap when the Nigerian Communications Commission (NCC) issued 46 Mobile Virtual Network Operator (MVNO) licenses, heralding a new era of competition and innovation.
The move was expected to democratise the telecom market, lower costs for consumers, and extend connectivity to 23 million Nigerians lacking telecom access, many in rural regions.
However, two years later, the anticipated boom has faltered, with only two MVNOs actively operational by August 2025.
Industry stakeholders point to infrastructure gaps, complex commercial negotiations, and a market dominated by major Mobile Network Operators (MNOs) as key hurdles stifling progress.
MVNOs, unlike traditional MNOs such as MTN, Airtel, Globacom, and 9mobile, do not own physical network infrastructure. Instead, they lease capacity from MNOs to offer tailored services, such as affordable data plans, fintech integrations, or IoT solutions.
The NCC structured the licenses across five tiers, from service resellers (Tier 1) to full virtual network enablers (Tier 5), with fees ranging from N35 million to N500 million. The initiative generated over N8.6 billion in licensing revenue, signaling strong initial interest.
Read also: Half of Nigeria’s MVNOs may collapse in 5years, stakeholders warn
Yet, the promise of a vibrant MVNO ecosystem remains unfulfilled. Vitel Wireless, a Tier 3 operator, became the first to secure a dedicated numbering range (0712) in January 2025 and announced plans to roll out services in Q2 2025, offering per-second billing and pay-as-you-go data plans on MTN’s network. EmoSIM, focusing on outbound travelers, launched Nigeria’s first travel eSIM, enabling seamless regional connectivity.
Other licensed MVNOs, including Lebara and Btel, have shown signs of activity but have not fully launched commercial services, leaving the sector’s growth stagnant.
Stakeholders have however voiced concerns about the sector’s slow progress.
Chidi Ajuzie, director of USK Mobile, warned that up to half of the 46 licensed MVNOs could collapse within five years without addressing critical challenges.
“Licences are not cash cows. Operators must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” Ajuzie emphasised.
Ajuzie highlighted the financial burden on Tier 4 and 5 operators, which are required to invest in partial infrastructure, a significant barrier given Nigeria’s economic challenges, including forex volatility and high operational costs.
The dominance of MNOs, which control over 165 million subscribers, poses another hurdle. MTN alone commands a 50% market share, with Airtel and Globacom holding significant portions, leaving little room for new entrants to compete.
MVNOs face unfavorable wholesale rates from MNOs, squeezing margins and making it difficult to offer competitive pricing.
Allan Rasmussen, CEO of MVNO Services, noted that MNOs are reluctant to open their infrastructure, fearing margin erosion from new competitors.
“Launching 46 MVNOs will cause mayhem through price drops, but that’s nothing new,” he said, predicting a high attrition rate among licensees.
Infrastructure gaps further complicate the landscape. Nigeria’s telecom sector, despite contributing N4.84 trillion to GDP in 2022, struggles with inadequate power supply, vandalism, and limited rural coverage, where only 40% of the population has reliable access.
