MVNOs need strategy, capital, collaboration to succeed –Stakeholders

By Chinenye Anuforo

The prospects of Mobile Virtual Network Operators (MVNOs) in Nigeria depend largely on strategic investment, tailored market approaches and stronger partnerships with established Mobile Network Operators (MNOs).

This was the clear consensus at the sixth edition of the Telecoms Sector Sustainability Forum (TSSF) in Lagos, where regulators, operators and industry leaders debated how to unlock the potential of MVNOs in Africa’s largest telecoms market.

With 46 MVNO licences already issued in Nigeria since 2023, stakeholders warned that the sector risks stagnation unless players rethink their approach. The Nigerian Communications Commission (NCC), represented by its Director of Licensing and Authorisation, Mr. Usman Mamman, highlighted that MVNOs are expected to bring niche, digital-first services that complement existing operators, not copy their models. Globally, there are more than 1,000 MVNOs, with Europe alone hosting over 500, underscoring Nigeria’s untapped potential.

NCC’s Executive Vice Chairman, Dr. Aminu Maida, pledged continued regulatory support but acknowledged the challenges of commercial negotiations and network capacity. He urged MNOs to see MVNOs as partners capable of monetizing spare capacity, expanding into new customer segments, and improving service diversity.

Industry stakeholders emphasised that Nigerian MVNOs cannot simply import foreign business models. ATCON President, Tony Izuagbe Emoekpere, argued that licensees must tailor their services to local realities, using service differentiation and specialized offerings to stand out. Echoing this, Infratel Africa’s co-founder, Dr. Tola Yusuf, stressed that real opportunity lies in rural and underserved areas, where more than 25 million Nigerians remain unconnected, rather than only in urban centres.

Infrastructure gaps also loomed large in the discussion. ipNX’s Olusola Teniola compared Nigeria’s 40,000 telecom towers to the UK’s 75,000, despite Nigeria’s population being three times larger. He warned that without heavy new investment in towers, fiber, and spectrum, many MVNOs will struggle to achieve viability, with only those prepared for a 7-to-10-year investment horizon likely to see returns.

Other speakers flagged the need for MVNOs to build their own billing and service platforms, pursue strategic mergers, or seek additional licences such as ISP authorisations to bypass network constraints. Flexibility, digital innovation, and long-term capital were repeatedly cited as essential ingredients for survival.

Bukola Olanrewaju, Convener of TSSF and Managing Editor of Business Remarks, closed the forum by stressing that the Nigerian MVNO market will succeed only if regulators, MNOs, and MVNOs work hand-in-hand to build a competitive but sustainable ecosystem. Drawing on lessons from South Africa, Thailand, and Argentina, she said Nigeria’s MVNO story could become a success, but only if players move beyond rhetoric and embrace collaboration, innovation, and strategic patience.