In 2022, when the Nigerian Communications Commission (NCC) introduced the Mobile Virtual Network Operators (MVNOs) license to the Nigerian telecoms industry, it noted that it was intended to provide access to mobile services to unserved and underserved areas nationwide.
Fast-forward to April 2023, and the NCC began issuing licences. By January 2024, the regulator had licensed 46 MVNOs across five tiers: 25 between April and June 2023 and 21 others in the following months.&nbsp;
However, an initiative projected to bolster competition and improve service offerings for Nigerian telecoms subscribers has now failed to meet expectations. Findings show that out of the 46 licensed MVNOs, only two are currently active.&nbsp;
Vitel Wireless, a Tier 3 operator, was the first to receive a dedicated numbering series (0712) in January 2025. By May 2025, the operator <a href="https://www.premiumtimesng.com/business/business-news/797275-vitel-wireless-completes-interconnectivity-with-all-major-mobile-network-operators-in-nigeria.html" target="_blank" rel="noopener noreferrer nofollow">announced</a> it had secured connectivity through a combination of direct fibre connections with some MNOs and indirect routing via third-party providers.
<figure class="wp-block-image size-full">
 <img loading="lazy" width="1224" height="601" src="https://technext24.com/wp-content/uploads/2026/01/Licensed-MVNOs1.jpg" alt="Licensed MVNOs">
 <figcaption>
 Licensed MVNOs in Nigeria (1/2)
 </figcaption>
</figure>
By August 2025, Vitel Wireless <a href="https://techafricanews.com/2025/08/07/vitel-wireless-officially-launches-in-nigeria/" target="_blank" rel="noopener noreferrer nofollow">launched</a> with the rollout of 50,000 SIM cards and eSIMs after securing a roaming deal with MTN Nigeria.&nbsp;
EmoSIM, another MVNO, launched in 2025, to become Nigeria’s first digital travel eSIM service. It allows travellers to get voice, SMS, and data without a physical SIM.&nbsp;
<figure class="wp-block-image size-full">
 <img loading="lazy" width="1173" height="606" src="https://technext24.com/wp-content/uploads/2026/01/Licensed-MVNOs-2.jpg" alt="Licensed MVNO">
 <figcaption>
 Licensed MVNOs in Nigeria (2/2)
 </figcaption>
</figure>
In all, the low success rate signals another failed project to provide the industry with rich competition and create a seamless network experience for over 170 million Nigerian telecoms subscribers.&nbsp;
<h4 id="understanding-the-struggles-of-mvnos-in-nigeria" class="wp-block-heading">Understanding the struggles of MVNOs in Nigeria</h4>
MVNOs are wireless communication service providers that resell mobile network services bought at wholesale prices from MNOs, such as T2mobile, Airtel, MTN and Glo, for discounted amounts. They resell the service, in the form of airtime and data, to consumers at reduced retail prices under their own business brand.
MVNOs lack the network and core infrastructure to deliver network services. This means that they depend on their host to provide this. They also depend largely on the infrastructure of a fully licensed mobile telecommunication service provider.&nbsp;
For the NCC, this initiative was projected to help MNO optimise the use of their network resources. To enrich their financial record, the MNO makes some profit by leasing capacity in bulk at wholesale prices.&nbsp;
However, the plan completely went off the mark when it was time to unfold.&nbsp;
<figure class="wp-block-image size-full">
 <img loading="lazy" width="1280" height="720" src="https://technext24.com/wp-content/uploads/2018/03/telecommunication-tower-720.jpg" alt="">
</figure>
While the initiative was for MVNOs to rely on MNOs, both faced challenges in collaborating, consequent upon challenges faced by MVNOs. This ranges from little knowledge about how the market works to agreement failure with MNOs.&nbsp;
While sharing his view on the issues with Technext, <a href="https://www.linkedin.com/in/ayokunnumi-abioye-48a331182" target="_blank" rel="noopener noreferrer nofollow">Abioye Tomiwa</a>, Regional Project Manager at ZTE Corporation, explained that the Nigerian telecom market is already “very competitive” for mobile virtual network operators to make their mark. He added that “even the ISPs are beginning to fail and steer off course.”
He acknowledged that aside from the guidelines of operation, the NCC left the newly licensed operators to navigate their own challenges.
Additionally, the new operators were licensed at a time when the industry was struggling with a series of infrastructure upgrades. This, in addition to poor service quality, made it difficult for newcomers to enter the market because their prospective hosts were struggling.&nbsp;
“There was a serious infrastructure deficit and issues in the country; hence, the MVNOs wouldn’t scale as they are expected to.”
Also Read: <a href="https://technext24.com/2025/10/30/all-should-know-about-nigerias-internet/" rel="noopener noreferrer nofollow">All you should know about Nigeria’s internet: Why it works and why sometimes it doesn’t</a>.
<h4 id="pricing-and-agreement-issues" class="wp-block-heading">Pricing and agreement issues</h4>
Many licensed MVNOs cite high wholesale pricing as a challenge. While they rely on mobile network operators for operation, they struggled to reach a favourable wholesale agreement.&nbsp;
It is akin to when a host is struggling to meet its target; the dependent will have to wait for a while. In addition, many MNOs faced challenges with operation, infrastructure cost and market conditions.&nbsp;
Between 2023 and early 2025, the telecoms industry was faced with harsh macroeconomic conditions, fueled by inflation and unfavourable foreign exchange (naira depreciation against the dollar). At such a period, MNOs were unable to fund infrastructure costs. This negatively affected MVNOs, who have little knowledge about the market and were unable to fund equipment costs.&nbsp;
For MNOs, the surest way is to offer leasing capacity with high rates to balance and possibly enlarge their financial books. Meanwhile, new operators struggled to meet these conditions, causing reluctance and an inability to launch.&nbsp;
<figure class="wp-block-image size-full">
 <img loading="lazy" width="879" height="601" src="https://technext24.com/wp-content/uploads/2026/01/MVNOs-MNOs.jpg" alt="">
</figure>
In his defence of MNOs’ action, Tomiwa noted that the pricing is a result of the high cost of maintenance, infrastructure build, logistics and so on.
“Outside of Lagos, no MNO can confidently boast of having 100% infrastructure coverage across Nigeria(all LGAs),” he said.
Explaining the market difficulty faced by MNOs and other telecom operators, he said industry players are struggling due to “security costs, zero support from the government, importation costs, deployment costs and generally low standard of living in other parts of the country.”
With active players still navigating serious operational issues, the chances of new players launching or having a smooth operation were not guaranteed.&nbsp;
<h4 id="what-needs-to-be-done" class="wp-block-heading">What needs to be done?</h4>
In realisation of these struggles, the NCC had temporarily suspended the issuance of new MVNO licenses in May 2024. The regulator cites the need to review market dynamics and the effectiveness of the current framework.&nbsp;
Yet, for the licensed MVNOs to have a favourable agreement and pricing condition, MNOs must be comfortable with the terms of infrastructure funding and enjoy an enabling market condition.&nbsp;
An operator such as T2mobile (formerly 9mobile), which is still struggling to regain its strength in the market, is unlikely to offer network to new operators. In fact, T2mobile, in a <a href="https://technext24.com/2025/09/18/mtn-nigeria-to-lease-t2-mobile-spectrum/" rel="noopener noreferrer nofollow">recently signed spectrum deal</a>, now relies on MTN Nigeria for network infrastructure to enhance its service coverage and quality.&nbsp;
<figure class="wp-block-image size-full">
 <img loading="lazy" width="1000" height="500" src="https://technext24.com/wp-content/uploads/2026/01/Nigerian-Telecom-Subscriber.jpg" alt="Nigerian Telecom Subscriber">
</figure>
In addition, telecom operators are facing challenges including fibre cuts, infrastructure theft and vandalism, Right of Way (RoW), power outages in telecom sites and other causes of network disruptions.&nbsp;
While the market seems largely competitive and open for new players to operate, government intervention is needed, according to Tomiwa.
“Proper infrastructure needs to be put in place, and the government needs to find a way to incentivise or assist in reducing the costs of infrastructure maintenance and deployment. That way, the MVNOs can get cheaper deals from MNOs.”
He noted that for the new players to survive, the NCC needs to review the framework that sets them up.&nbsp;“MVNOs are not the problem; the problem is that we licensed them to work in a ‘fish eat fish’ market and expect them to survive,” he said.
Also Read: <a href="https://technext24.com/2026/01/08/should-nigerians-expect-improved-network-and-internet-performance-in-2026/" rel="noopener noreferrer nofollow">Should Nigerians expect improved network and internet performance in 2026?</a>
The post <a href="https://technext24.com/2026/01/23/ncc-licensed-46-mvnos-only-2-are-active/" rel="noopener noreferrer nofollow">NCC licensed 46 MVNOs in two years but only 2 are operational. Here is why</a> first appeared on <a href="https://technext24.com" rel="noopener noreferrer nofollow">Technext</a>.

NCC licensed 46 MVNOs in two years but only 2 are operational. Here is why

Technext.ng

Other articles published on Jan 23, 2026

Join our free newsletter for daily crypto updates!