Nigeria’s telecom expansion suffers hitches

Nigeria’s push to expand its telecom market—Africa’s largest, with 169 million mobile subscribers—through Mobile Virtual Network Operators is encountering questions about execution and readiness, as growth in rural connectivity remains sluggish.

Since 2022, the Nigerian Communications Commission issued 46 MVNO licences, but new entrants are struggling to gain traction against dominant mobile giants.

In March 2025, Liv.ng became Nigeria’s first operational MVNO, marking a significant milestone after years of regulatory groundwork. However, only a handful of licensed MVNOs have launched, while others, such as Vitel Wireless, which is set to debut in Q2 2025, are still preparing for rollout.

“Nigeria is open to MVNOs because they offer greater choice and better service,” said Ernest Akinola, former CEO of a Nigerian telecom company and a pioneer of the MVNO model in the UK, in an interview with The PUNCH. “But are MVNOs truly prepared for Nigeria?”

Unlike traditional mobile network operators like MTN, Airtel, Globacom, and 9mobile—which own and operate infrastructure—MVNOs lease capacity from these networks and target niche segments with tailored voice, SMS, data packages, and value-added services such as IoT and location-based solutions.

Akinola pointed out several key hurdles, including the lack of clearly differentiated business models, untested financial viability in today’s economic climate, and the slow pace at which many licensees are scaling operations.

He also warned that a 14-per cent tariff on imported equipment from the U.S. could drive up operational costs for new entrants.

The NCC’s MVNO framework, structured across five licence categories from Tier 1 to Tier 5 with fees ranging from N35m to N500m, aims to foster competition, expand service offerings, and improve connectivity in underserved rural areas.

“Liv.ng is not just about connectivity; it’s about transforming lives,” said the company’s CEO, Femisola Awosika, in a note shared with The PUNCH in March. “By integrating education, healthcare, and financial access into our network, we are creating a service that meets real-life needs and drives meaningful change.”

However, market realities remain complex. Akinola questioned whether MVNOs can effectively differentiate and scale in a sector dominated by MNOs with extensive infrastructure and strong brand loyalty.

MTN alone commands over 50 per cent of the market share, while Airtel continues its aggressive 4G expansion. Meanwhile, rural coverage remains around 40 per cent, according to the World Bank.

Nigeria’s telecom sector holds significant potential for MVNOs targeting youth, rural populations, and mobile-first fintech users. However, thin margins, limited reach, and infrastructure dependence could stifle early momentum.

Akinola referenced his experience with Virgin Mobile in the UK, which took years to gain traction despite a more mature market. While Lagos, Nigeria’s tech capital, continues to attract over $2bn in startup funding, MVNOs must still win over price-conscious consumers in an already saturated market.

According to Ericsson, rural 5G penetration stands at just two per cent, suggesting that MVNOs could carve out opportunities if they move quickly and strategically.

“It’s still early days,” Akinola said. “The next few months will reveal what these operators can actually deliver.”