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Nigeria’s VAS Market Hit ₦79Bn, yet Unhealthy

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Nigerian Value Added Services (VAS), market is valued at about ₦79 billion. Yet, it is dangerously going in comatose.

 

The business which until recently, appeared the most innovative segment of the Nigerian technology ecosystem, has lost its glory due to continued allegations and counter-allegations.

 

There are allegations of sharp and underhand practices against the VAS providers, particularly on their billing method.

 

Another dangerous factor sounding the death knell for the market is the revenue sharing dispute between the VAS providers and the telecom operators, whose platforms, the providers use.

 

There is also the alleged high handed regulatory methods, which the providers complain stifle their operations and revenue base.

 

In all of these factors, the VAS operators, under the aegis of Wireless Application Services Providers of Nigeria, WASPAN,Nigerian telecom operators and the Nigerian Communications Commission, (NCC) are locked into argument of who is at fault.

 

However, all, ironically, agree there is urgent need of VAS market rebirth.

 

Value added services, are regarded as all services beyond voice calls and fax transmissions but non-core offerings used to promote primary or core telecom businesses.

 

They include; contest and voting messages, devotional applications, live streaming, location-based services, miss call alert and voicemail box, mobile advertising, mobile money and m-commerce services among others.

 

The market, according to NCC, is estimated to grow beyond ₦200 billion by year end, 2021.

 

It was imported from saturated technology markets in developed economies, 17 years ago.

 

The earliest challenge of the services was patronage but the ingenuity of the earliest service providers opened up interests. Two services, monotones and short message services, SMS, among all others,made sense to Nigerian users and the earliest service providers capitalised on them to provide the razzmatazz that was to rapidly grow the industry and eventually fizzled out due to revenue sharing disputes and alleged regulatory incapacitations.

 

The Nokia push email compliant phones and ringtone facilities of providers like Mtech, helped to build the market.

 

The services evolved from the earliest two, to Enhanced Messaging Services, EMS, to Multi-Media Services, MMS, and spread to what are today considered Over The Top (OTT) Services like WhatsApp, facebook, netflix and all.

 

Apparently trying to take the bull by the horn, the Nigerian Communications Commission engaged stakeholders in a town hall meeting, meant to stimulate a reawakening of the VAS segment of the Nigerian telecom sector.

 

At the meeting in Lagos, NCC announced that despite challenges, there were still over 200 VAS providers in the country, a signal that the segment holds great potential to the country’s economic reawakening.

 

Making the announcement, Engr. Ubale Maska, executive commissioner, Technical Services, said that growth of VAS in Nigeria, despite challenges, indicated the growing interest in VAS provision and how innovative Nigerians are becoming in using technology to solve problems affecting the sector and Nigeria generally.

 

Maska, represented by Deputy Director, Technical Standards, Engr. Bako Wakil, said: “As the ICT ecosystem develops daily, there are bound to be challenges and stakeholders in the sector have to collaborate to proffer solutions together in order to get full benefits of the innovation that VAS can bring. That is the essence of this stakeholders’ forum.”

 

He averred that the forum makes it all the more interesting because it will go a long way in harmonising ideas and strengthening VAS operations and services for the benefit of all.

 

Also, presenting a short code harmonisation project by the commission, Engr. Tony Ikemefula, head, Fixed Networks and Wireless Services, said that one of the problems encountered in VAS operations in the country is the proliferation and duplication of short code numbers amongst operators.

 

He revealed that the Commission had decided to harmonise short codes including those used in air time top ups among operators to make it easier for subscribers to memorise.

 

He, however, allowed the VAS operators the opportunity to carry out internal harmonisation amongst their members, aligning with the new short code plans and report back results to the NCC.

 

Representing the VAS operators, Mr. Chijioke Ezeh, national coordinator, Wireless Application Services Providers of Nigeria (WASPN), said that most of the problems in the VAS space are not new but induced by its own evolution.

 

He, however, said they would have been contained if the regulator that was supposed to be the intercessor between the VAS operators and telecom operators had a good knowledge and full grasp of VAS operations.

 

According to him, “As our market began to evolve, revenue imbalance, share imbalance among stakeholders, imbalance in demographics, wide imbalance in purchasing power among subscribers, imbalance of tech standards and offerings and imbalance in licence offerings, set in.

 

“In 2011, the regulator stepped in, to provide licensing which will balance the market. But unfortunately, it yielded the exact opposite result, apparently because it lacked the understanding of VAS operations.

 

“Today, it appears the industry, despite the huge financial numbers, is dying.”


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FG Expands 3MTT Programme Across the Country

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Dr Bosun Tijani, Nigeria’s minister of communications, innovation, and digital economy, has revealed that the federal government’s 3 Million Technical Talent (3MTT) programme has trained over 135,000 citizens as it moves from pilot to national level.

Tijani announced this in an update on the program’s success, stating that the beneficiaries were trained in three batches.

He also stated that the initiative’s community-based learning tools had provided over 300,000 extra learners with access to digital skills training across the country.

According to the minister, the program has also enabled the creation of about 15,000 job, entrepreneurship, and career development in Nigeria’s developing digital economy.

He further revealed that more than 1.8 million Nigerians are currently in the 3MTT pipeline, as the government works toward its target of equipping three million citizens with in-demand digital skills aligned with local and global labour market needs.

As the programme enters its scale-up phase, Tijani said the government’s focus will shift toward deepening impact rather than just expanding numbers.

Key priorities, he explained, include strengthening the 3MTT alumni community, widening access to economic opportunities and ensuring that skills acquired through the programme translate into measurable outcomes such as jobs, business creation and innovation.

To support this phase, the federal government has introduced the #3MTTImpactChallenge, an initiative aimed at assessing the programme’s real-world impact

Through the challenge, fellows and partners are invited to share personal stories on how 3MTT has shaped their professional journeys as part of a National Impact Reflection exercise.

Participants are expected to share their experiences across social media platforms, with selected winners set to receive prizes including laptops, e-tablets, data bundles and other incentives.


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MTN Foundation Trains 2,000+ Young Nigerians in ICT for SME Growth

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MTN Foundation has kicked off the seventh phase of its ICT business skills training programme, targeting more than 2,000 entrepreneurs, mostly from Nigeria’s small and medium-scale enterprises (SMEs), in support of the Federal Government’s National Digital Economy and SME Development agenda.

MTN Foundation Trains 2,000+ Young Nigerians in ICT for SME Growth

MTN Foundation

The virtual training’s first week ran from Monday, January 5, to Friday, January 9, 2026. It equips small business owners and aspiring entrepreneurs with simple digital tools to shift from paper-based operations to efficient, productivity-boosting systems.

Business analyst Babajide Jolaolu-Kehinde, moderated by Temiloluwa Oyekanmi, programme and partnerships lead, introduced the SWOT framework—Strengths, Weaknesses, Opportunities, and Threats—to guide participants in assessing and improving their businesses.

Jolaolu-Kehinde stressed digital record-keeping, online payments, and customer data tracking for measurable growth, aligning with government efforts to formalise SMEs. “Hope is good, but action and systems make growth happen,” he said.

Trainers showcased real-world examples: traders using handwritten ledgers expanded reach via WhatsApp Business, online marketplaces, and spreadsheets; others grew by accepting mobile transfers over cash and digital orders to tap distant markets.

Manual operations limit sales visibility and customer insights, experts noted, while digital tools deliver real-time data, cut errors, and unlock broader markets.

Participants must adopt at least one digital tool post-onboarding, with organisers promising follow-up workshops and mentorship. The four-week programme aims to bolster SME growth and Nigeria’s economic goals.


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Spacecoin Secures Licenses to Roll Out Satellite Connectivity in Nigeria, Kenya

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Spacecoin, US-based, has announced the signing of recent agreements with local authorities and operators to launch satellite connectivity pilot projects in Africa.

Spacecoin Secures Licenses to Roll Out Satellite Connectivity in Nigeria, Kenya

The initiatives, focused on Kenya and Nigeria, aim to serve areas where terrestrial networks remain limited or unavailable.

n Kenya, Spacecoin has obtained a transmission license from the Communications Authority, allowing it to test satellite-based solutions for connectivity and Internet of Things (IoT) monitoring, particularly in rural and peri-urban areas with limited internet access.

According to the Kenyan regulator, internet penetration remains below 50% of the population, despite mobile penetration exceeding 130%.

In parallel, the company is continuing operations in Nigeria under an existing license issued by the Nigerian Communications Commission (NCC).

This authorization supports initiatives aimed at delivering affordable broadband connectivity to isolated and underserved communities.

Spacecoin’s approach is based on a decentralized satellite network using nanosatellites in low Earth orbit (LEO).

Combined with blockchain-based protocols, this architecture is intended to offer more flexible and cost-effective connectivity services than traditional networks, while also enabling the integration of IoT solutions for a range of uses, from smart agriculture to infrastructure monitoring.

These projects are part of a broader strategy to help narrow Africa’s digital divide, where a significant share of the population still lacks access to reliable internet services.

Satellite technology is increasingly viewed as a complement to terrestrial infrastructure, particularly in hard-to-reach areas where deployment costs and geographic constraints remain high.

Beyond Africa, Spacecoin is also running pilot projects in Asia, working with local partners to test the viability of its model across different regulatory and geographic environments.

According to the company’s management, growing interest from regulators reflects a shift toward solutions capable of reaching populations that have long been excluded from internet access.


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