Nigeria bet on Mobile Virtual Network Operators (MVNOs) to transform its telecoms sector.
In 2023, the Nigerian Communications Commission (NCC) issued 46 licences, aiming to lower costs, boost competition, and connect 23 million unserved Nigerians.
However, two years later, the numbers tell a different story: only two operators—Vitel Wireless and EmoSIM—now run services.
Promise Versus Reality
The contrast between ambition and reality is stark.
Unlike Mobile Network Operators (MNOs) such as MTN and Airtel, MVNOs lease network capacity instead of building their own infrastructure.
While the model thrives abroad, Nigeria’s version faces steep hurdles.
To start with, the NCC charged between ₦35 million and ₦500 million per licence, generating ₦8.6 billion in revenue.
Yet many licensees struggled to move beyond approvals into operations.
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By January 2025, Vitel Wireless secured its own numbering range and began preparing per-second billing and flexible data bundles on MTN’s network.
Around the same time, EmoSIM launched Nigeria’s first travel eSIM to serve outbound travellers.
Even so, other players like Lebara and Btel have yet to launch, leaving momentum stalled.
Barriers To Growth
Meanwhile, industry insiders blame structural challenges.
Dominant MNOs impose wholesale rates that squeeze margins.
At the same time, forex volatility and infrastructure costs weigh heavily on smaller operators.
MTN alone controls nearly half of Nigeria’s 165 million mobile subscribers, which leaves limited space for new entrants.
Director of USK Mobile, Chidi Ajuzie, issued a blunt warning: “Licences are not cash cows.
Without solid strategies, many MVNOs will collapse within five years.”
Therefore, Nigeria’s grand MVNO experiment now risks becoming a cautionary tale instead of a success story.
