Telecom
Stakeholders Chart Strategic Path for MVNOs in Nigeria
A decisive call for collaboration, strategic market positioning, and patient capital has been issued by key players in Nigeria’s telecommunications sector to unlock the dormant potential of Mobile Virtual Network Operators (MVNOs).
The resolution emerged from the sixth edition of the Telecoms Sector Sustainability Forum (TSSF) organised by Business Remarks at Ikeja, Lagos State, where stakeholders convened under the theme: Unlocking Nigeria’s MVNO Potential: Status, Trends, Investment, and Future Prospects.
The forum, which brought together major mobile network operators (MNOs), the Nigerian Communications Commission (NCC), and licensed MVNOs, served as a candid platform to diagnose the critical challenges stifling the growth of the MVNO sub-sector. The forum stressed that the sustainability of MVNOs in Nigeria is a collective responsibility. It called for unwavering collaboration between MNOs, the NCC, and the MVNOs to replicate the success stories seen in other nations, ultimately fostering a more diverse, competitive, and inclusive telecommunications market for all Nigerians.
In his keynote address, the Executive Vice Chairman of the Nigerian Communication Commission, NCC, Dr. Aminu Maida said the entrance of MVNOs is expected to provide competitive niche offerings as well as enhance digital communications ecosystem in Nigeria for the benefit of the subscribers and the Nigerian economy.
Ably represented by the Director of Licensing and Authorisation, Mr Usman Mamman, NCC noted that there are now over 1000 MVNOs globally, with more than 500 operating in Europe alone and 46 MVNO Licenses were issued in Nigeria by the regulator in the year 2023.
Addressing stakeholders, Maida stated that the Commission is not oblivion to the challenges faced by MVNOs in Nigeria, particularly in relation to commercial negotiations. He therefore pledged that NCC is working assiduously with Mobile Network Operators (MNOs) to improve network capacity.
Furthermore, NCC’s EVC encouraged MNOs to partner with MVNOs to target new verticals, drive margin growth as well as to monetize spare capacity, while urging MVNOs players to recognise the viability of the Nigerian market, invest boldly, and position themselves to reap the long-term benefits of their investments.
In his speech, the President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr Tony Izuagbe Emoekpere, dissuaded MVNO Licensees from blindly adopting foreign MVNOs model for Nigerian local market and consumers. He urged players to conduct diligent market analysis and focus on service differentiation through specialized offerings. “MVNOs need to carve a unique niche specially designed for the Nigerian market,” Emoekpere said.
Speaking on this, the co-founder and executive director, Infratel Africa, Dr Tola Yusuf, stressed that MVNOs in Nigeria’s market must adopt a more strategic approach to succeed in rural and underserved areas. Categorically noting that there are immense potential in connecting these rural communities, Yusuf argued that MVNOs often focus on urban, high-density areas like Lagos, neglecting the vast majority of the population, estimated at over 25 million people who remain completely unconnected.
“The true winners in the MVNO space will be those who develop a clear strategy to serve these markets, even if it requires significant logistical effort, such as using horses or boats to reach remote communities,” he said. He also suggested that the current market might see future mergers and acquisitions, with some license holders potentially selling their licenses as they fail to compete effectively.
Citing examples of banks with MVNOs licenses in other climes, NCC’s Director of Licensing and Authorisation, Mr Usman Mamman during the panel session draws attention to how financial institutions have successfully entered the telecom space by understanding its customers’ needs and tailoring holistic lifestyle services accordingly.
While addressing the need to focus on providing niche services to specific customer groups, Mamman noted that unlike large mobile network operators, MVNOs are expected to be digital-first and flexible, which enables them to be innovative and quickly capitalize on underserved market segments.
On his part, the Director USK Mobile, Dr Chidi Ajuzie, called attention to the capacity constraints by the host MNOs and the revenue- sharing model that can limit profitability. Ajuzie
According to him, “Tier 5 MVNOs are expected to build their own core infrastructure and billing systems (BSS/OSS), but they still rely on the MNO’s radio access network. This creates a bottleneck. Even if a Tier 5 MVNO has excellent billing systems, it can’t offer unlimited data or guaranteed high speeds if the MNO’s network is already at capacity,” he stated.
Ajuzie, however, said some higher-tier are now looking for innovative ways to go beyond the constraint by securing acquiring additional licenses, such as Internet Service Provider (ISP) or Public Licence (PL) licenses.
He also emphasized the
need for a significant expansion of the existing infrastructure, particularly by MVNOs who are now integrating their own fixed infrastructure, such as fiber networks. This expansion, he says, is the only way to “expand the pipe” and create a truly competitive and viable market for all players.
Also speaking ipNX Director of Startegic Business Initiative, Mr Olusola Teniola argued that the nation’s 40,000 telecom towers are grossly insufficient for a population of over 200 million, especially when compared to the United Kingdom’s 75,000 towers for a much smaller population. He stated that unlike developed nations where public funds initially built a robust telecom backbone, Nigeria’s infrastructure was financed by a few dominant mobile network operators (MNOs) who have invested billions.
Teniola posited that the lack of widespread infrastructure, particularly outside major cities like Lagos, Abuja, and Port Harcourt, presents a major challenge for new MVNOs, which were intended to serve the millions of unconnected Nigerians, particularly in rural areas. He also warned that without substantial new investment to expand the network, the MVNO business model will struggle to succeed, with only those that can survive a long-term, 7-to-10-year investment cycle likely to see a return on their capital.
In her welcome address, the Convener who also doubles as the Managing Editor of Business Remarks, Bukola Olanrewaju, said the Nigerian telecom market is growing at an incredible pace and the level of success recorded in each country with MVNOs is largely dependent on the regulatory enforcement and interventions, wholesale agreement, spectrum access, and on how effectively MVNOs players can navigate these hurdles.
“To succeed, Nigeria must collectively build an ecosystem that is both competitive and sustainable,” Olanrewaju remarked as she brought into focus MVNOs operations in South Africa, Thailand and Argentina.
The forum, TSSF 6.0, stressed that the sustainability of MVNOs in Nigeria is a collective responsibility. It called for unwavering collaboration between MNOs, the NCC, and the MVNOs themselves to replicate the success stories seen in other nations, ultimately fostering a more diverse, competitive, and inclusive telecommunications market for all Nigerians.
OpenAI, the developer of ChatGPT, is reportedly in discussions to offer the U.S. government a five per cent equity stake in the company as part of efforts to address growing political and regulatory scrutiny surrounding artificial intelligence (AI).
According to a report by the Financial Times, the proposal is still at an early stage and would see other leading American AI companies consider similar arrangements to allow the public to benefit from the industry’s rapid growth.
OpenAI Chief Executive Officer, Sam Altman, was quoted as saying that public ownership would enable citizens to share in the economic benefits generated by AI while helping to build public trust in the technology.
Based on OpenAI’s March funding round, which valued the company at about 852 billion dollars, a five per cent stake would be worth approximately 42.6 billion dollars.
The report said the proposal comes amid increasing concerns over AI’s impact on jobs, national security and the concentration of wealth within a handful of technology companies.
Last month, U.S. President Donald Trump said his administration was exploring ways to ensure Americans benefit directly from the country’s leadership in artificial intelligence, including the possibility of government equity stakes in AI companies.
Under the reported proposal, OpenAI executives suggested that major AI firms could allocate five per cent of their equity to a public investment vehicle modelled after the Alaska Permanent Fund, which invests state oil revenues and distributes returns for public benefit.
The discussions are also taking place as OpenAI and rival AI company Anthropic prepare for potential stock market listings that would allow public investment in their businesses.
According to the report, implementation of such an arrangement could require approval by the U.S. Congress, while it remains unclear whether other AI companies would support the proposal.
OpenAI had previously advocated the creation of a “public wealth fund” that would give every citizen a stake in AI-driven economic growth, regardless of whether they participate in financial markets.
The proposal comes as the Trump administration intensifies oversight of advanced AI technologies while promoting U.S. leadership in the rapidly expanding sector.
Kashifu Inuwa, director general of the National Information Technology Development Agency (NITDA), has said the next phase of growth for Nigeria’s banking sector will be driven less by capital accumulation and more by the ability of financial institutions to build digital trust through artificial intelligence (AI), regulatory technology (RegTech) and cyber resilience.
From left: Wole Famurewa, Ayotunde Coker, Managing Director, Rack Centre; the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa; Prof. Olayinka David West of Lagos Business School; and Femi Osinubi, Africa Advisory Leader, PwC, during the panel session, “The Efficiency Frontier – AI, RegTech and Cyber Resilience,” at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos.
Speaking during a panel session titled “The Efficiency Frontier – AI, RegTech and Cyber Resilience” at the Future of Banking Nigeria Summit organised by CNBC Africa in Lagos, Inuwa argued that while Nigeria’s banking industry has successfully weathered major reforms over the past two decades, the emerging threats confronting the sector require a different approach.
He noted that the industry has repeatedly demonstrated resilience through landmark milestones such as the 2005 banking consolidation, the 2009 banking reforms and the ongoing recapitalisation exercise. According to him, the priority has now shifted from simply raising capital to ensuring that such capital is protected and sustained in an increasingly digital economy.
“Today’s question is no longer whether we can raise capital, but whether we can protect, preserve and grow that capital in the digital era. Trust has become the foundation of modern banking, and that trust must be built on resilient digital infrastructure and effective regulation,” he said.
Inuwa observed that digital channels have become the primary point of interaction between banks and customers, making technology resilience, cybersecurity and uninterrupted service delivery essential to maintaining public confidence in the financial system.
He described artificial intelligence as a strategic tool capable of transforming banking operations by improving productivity, strengthening decision-making, boosting revenue and delivering personalised financial services that reflect the expectations of digitally connected customers.
The DG also highlighted the growing importance of regulatory technology, saying its adoption can simplify compliance, lower operational costs, improve transparency and strengthen governance across financial institutions.
According to him, effective regulation must evolve alongside innovation. He explained that NITDA combines formal regulatory instruments with collaborative, innovation-friendly approaches that allow emerging technologies to develop while regulators establish appropriate standards and safeguards.
“Technology evolves much faster than traditional regulation. Regulators must work closely with innovators to create enabling frameworks that encourage innovation while protecting consumers and maintaining market confidence,” he said.
Using Nigeria’s thriving fintech ecosystem as an example, Inuwa said technology has fundamentally changed the delivery of financial services by enabling customers to open accounts, access banking products and carry out transactions remotely without visiting physical branches.
He further called for closer collaboration among regulators to improve access to finance for Small and Medium-sized Enterprises (SMEs). He explained that AI-powered credit assessment and digital financial management tools can help financial institutions better understand business performance, reduce lending risks and expand credit to underserved enterprises.
On responsible AI adoption, Inuwa disclosed that NITDA’s National Artificial Intelligence Strategy provides a framework for deploying AI across critical sectors in partnership with sector regulators, including the Central Bank of Nigeria (CBN) for financial services.
He added that the Agency is also developing National Standards for Sovereign Cloud infrastructure and data classification to strengthen Nigeria’s digital sovereignty and ensure that sensitive national and financial data remain adequately protected.
Inuwa concluded that deeper collaboration among regulators, technology innovators and financial institutions will be critical to building a secure, resilient and globally competitive financial ecosystem that supports sustainable economic growth.
Indian government has asked Meta Platforms to suspend the rollout of WhatsApp’s proposed username feature in the country over fears that it could fuel online fraud, impersonation and phishing attacks.
The directive, issued by the Ministry of Electronics and Information Technology (MeitY), comes days after WhatsApp announced plans to introduce usernames globally, allowing users to connect without sharing their phone numbers in a move aimed at enhancing privacy.
India, WhatsApp’s largest market with more than 500 million users, expressed concern that the feature could make it easier for cybercriminals to impersonate individuals and organisations, particularly among users with limited digital literacy.
According to media reports, the ministry, in a letter to Meta, warned that the feature could increase incidents of online fraud, phishing, digital arrest scams and identity theft.
A senior government official was quoted as saying that malicious actors could claim usernames resembling those of legitimate individuals and use them to deceive unsuspecting users.
The ministry has reportedly asked Meta not to launch the feature in India until consultations with the government are concluded and the company provides satisfactory explanations on the safeguards built into the system. Authorities have also asked WhatsApp to respond to the concerns within three days.
Responding to the concerns, Meta said the username feature had not yet gone live in India and stressed that multiple security measures had been incorporated to prevent abuse.
The company said usernames for high-profile public figures and verified organisations had already been reserved to prevent impersonation.
Meta added that users would still require a phone number to register for WhatsApp and that the platform had introduced several layers of protection, including limits on messaging unknown users, restrictions on repeated attempts to guess usernames, and systems to detect and remove impersonation and scam-related activities.
The latest development comes as India intensifies efforts to combat cybercrime amid a sharp rise in digital fraud cases across the country.
Government data indicate that financial losses from cyber fraud have risen significantly in recent years, prompting closer scrutiny of digital platforms and their security features.
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