Stakeholders in the telecoms sector have warned that many Mobile Virtual Network Operators (MVNOs) in Nigeria risk collapse without addressing infrastructure gaps, niche markets, and local realities.
They stressed that operators must move beyond licences to develop models reflecting Nigeria’s unique environment, or risk failure in a market still dominated by major Mobile Network Operators (MNOs).
The warning came during the sixth edition of the Telecoms Sector Sustainability Forum, organised by Business Remarks in Lagos on Tuesday.
Chidi Ajuzie, Director of U.SK Mobile, noted that though over 40 MVNOs had secured licences from the Nigerian Communications Commission (NCC), none had fully launched.
He predicted that only about half of them might survive within the next five years.
“Licences are not cash cows. Too many people think that once you get a licence, the money will start rolling in.
“You must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” he said.
Ajuzie explained that smaller players, especially in Tier 4 and Tier 5, were expected to build part of their own infrastructure to support capacity.
According to him, this presents a major financial constraint but also an opportunity for innovation.
He noted that MVNOs in countries such as South Africa and India grew by targeting niche markets, including youth, migrant workers, or fintech services.
He advised Nigerian operators not to compete head-to-head with MNOs, but instead define their own spaces.
“Half of us may launch, but only those with clear strategies will survive. In five to six years, we may also see mergers,” he said.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), agreed that market differentiation was the only way MVNOs could remain sustainable.
He explained that the NCC issued multiple licence categories not only to liberalise the market but also to prevent dominance and give consumers more choice
“The real question is how MVNOs differentiate themselves in a crowded market. MNOs already provide enterprise services, internet, and even fintech,” Emoekpere said.
He cited Kenya’s success with M-Pesa, which transformed payments by targeting rural and low-income users.
“Many think of M-Pesa as just fintech, but it was built on strong telecom infrastructure. That’s the type of local innovation we need,” he said.
Emoekpere further highlighted the potential in rural areas, where millions of Nigerians still lack access to reliable telecom and financial services.
He explained that many villagers still travel long distances simply to access a POS machine.
“Designing a low-data package for POS machines in rural areas could be a game changer.
“These terminals do not need broadband. A 2G network can handle them, and it would save rural dwellers unnecessary journeys,” Emoekpere said.
Olusola Teniola, Director of IPNX, warned MVNOs against copying European or American models without understanding Nigeria’s unique realities.
“If you go to a village today, you will see people travelling for hours by canoe or horse just to access basic services.
“One cannot copy and paste from abroad. It is necessary to build from the ground up,” Teniola said.
He stressed that MVNOs must conduct due diligence before acquiring licences, given Nigeria’s peculiar challenges with affordability and rural connectivity.
“The biggest market is not the flashy smartphone users in Lagos. The biggest market is at the bottom of the pyramid,” he said.
Teniola also warned that neglecting indigenous companies would allow more profits to leave Nigeria through foreign ownership of major operators.
He emphasised the need for policies that protect data sovereignty and encourage local innovation.
The stakeholders concluded that while MVNOs could help expand Nigeria’s telecom sector, survival depends on strategic planning, niche targeting, and rural-focused services.
They warned that without urgent focus on infrastructure, niche differentiation, and rural services, many Nigerian MVNOs would disappear before they even begin.
