Nigeria’s telecom regulator handed out dozens of Mobile Virtual Network Operator licenses starting in 2023. The plan was simple. Smaller, agile players would ride on existing networks and shake up a market long dominated by MTN, Airtel, Globacom, and 9mobile. Three years later, the results tell a different story. Out of 46 licensed MVNOs, only two have actually launched. Here are five reasons the rollout has stalled.
First, getting the big networks to cooperate remains a major obstacle. MVNOs cannot operate without a wholesale agreement. This agreement lets them buy network capacity from an established operator. However, many Mobile Network Operators see MVNOs as future competitors rather than partners. As a result, negotiations often turn slow, expensive, and even hostile. One MVNO executive said his company faced resistance and suspicion during wholesale talks. Without a signed deal, a licensed MVNO simply cannot switch on its service.
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Second, money is a huge hurdle. Building a nationally relevant MVNO in Nigeria can cost between 5 billion and 20 billion naira before reaching meaningful scale. Much of that spending goes toward software, hardware, and cloud services priced in U.S. dollars. Meanwhile, most MVNOs earn revenue in naira. This mismatch creates constant financial pressure, especially when customer spending stays below projections. Many investors also entered the space expecting quick profits. Instead, they discovered just how capital intensive telecom infrastructure really is.
Third, a shortage of skilled talent slows things down. Running an MVNO requires expertise in billing systems, customer support, and regulatory compliance. Yet Nigeria’s telecom sector has not trained enough professionals who understand the business from start to finish. Because of this gap, technical integration drags on and launch timelines keep slipping.
Fourth, infrastructure gaps make matters worse. Despite contributing trillions of naira to GDP, Nigeria’s telecom sector still battles unreliable power supply, equipment vandalism, and limited rural coverage. In fact, only about 40 percent of the population has reliable access to service. Since MVNOs depend entirely on their host network’s infrastructure, any weakness there directly limits how far an MVNO can reach.
Finally, regulatory complexity adds another layer of delay. The Nigerian Communications Commission issued licenses across five different tiers, each with its own technical and financial rules. Compliance obligations, SIM registration, and interconnection procedures all add cost and friction. Worried about overcrowding a fragile market, the NCC even paused new MVNO licensing in May 2024. Since then, regulators have drafted new business rules to rescue the sector. Still, most licensees remain stuck in limbo for now.
Altogether, these challenges explain why a market built on high hopes has produced so few working operators. Analysts believe MVNOs that focus on niche segments, similar to successful models in South Africa and India, stand a better chance of survival. But until wholesale access improves and funding becomes easier to secure, most of Nigeria’s licensed MVNOs will likely stay on paper rather than on the network.
