Fresh Wave: Revitalization of Nigeria's Telecom Sector Demands Fresh Competition for Progress
In the heart of West Africa, Nigeria's telecom sector has been dominated by a sluggish duopoly, with MTN and Airtel controlling nearly 90% of the market. This monopoly leaves consumers with fewer choices, less innovation, and little incentive for incumbents to improve.
Since 2022, the Nigerian Communications Commission (NCC) has issued over 40 Mobile Virtual Network Operator (MVNO) licenses, aiming to introduce competition and foster growth. However, only two, Vitel Wireless and Lebara, are actively moving toward commercial launch later this year.
The decline in Globacom's market share, once Nigeria's second-largest operator, has been significant. From 26% in early 2024, Globacom's share has fallen to 11%. The primary cause of this drop is an NCC audit that purged improperly registered and inactive SIMs, leaving the company grappling with issues such as poor customer service, deteriorating network quality, underinvestment, and ignoring mounting customer grievances and its aging infrastructure.
Wole Adetuyi, CEO of Swift Telephone Network (STN), emphasizes the need for new players in the industry. The time has come to reintroduce competition into the Nigerian telecom sector, whether through MVNOs, new mobile licencees, or strategic partnerships with global players.
Historically, new entrants like Globacom, which launched in 2003 with per-second billing, an African first, and services such as MMS, BlackBerry, and mobile banking, have shaken up the market. Etisalat, now 9mobile, followed in 2008 with innovations like a real-time self-service portal, "MyEtisalat," and "Eco SIM" which offered affordable tariffs.
However, no new mobile operator has entered Nigeria since Etisalat took over a 3G licence in 2008. The dominance of MTN and Airtel has squeezed out smaller independent ISPs and other potential competitors, leading to slow progress in improving broadband infrastructure. As of May 2025, only 48.8% of Nigeria's 216 million people have broadband access.
Negotiations over network usage fees, revenue sharing, and service-level guarantees between MVNOs and Mobile Network Operators have become drawn-out and contentious. Many MVNOs have been unable to secure favourable wholesale agreements with Mobile Network Operators, who often view them as competitive threats.
The NCC has struggled with enforcement, failing to consistently hold Mobile Network Operators accountable for ensuring timely and fair access. This has further hindered the entry of new players into the market.
Orange Telecom almost became a new force in Nigeria but gave up in 2023, citing an uncompetitive landscape and MTN's market dominance as too entrenched. Morocco, on the other hand, attracted players like Etisalat, Orange, and Zain between 2010 and 2014, and now boasts 91% internet penetration. South Africa has also welcomed new investment and eight MVNO-backed brands, expanding competition and boosting broadband access to 79%.
As the Nigerian telecom sector seeks a new player bold enough to take on the giants and shake things up again, the potential benefits are clear: increased competition, improved customer service, and faster progress in broadband infrastructure. The question remains: who will step up to the challenge?
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