195m Subscribers: New MVNOs Face Uphill Task In Nigeria’s Telecom Market

Competition in Nigeria’s telecommunications sector is set to intensify as Lebara has commenced nationwide commercial operations as a Mobile Virtual Network Operator (MVNO), becoming the second operator under the country’s emerging virtual network framework.

According to the NCC, the Nigerian telecommunications market continues to expand, with active mobile subscriptions reaching 195.11 million in July 2026. This figure emphasises the size of the market now targeted by new entrants seeking to compete with established mobile network operators.

Unlike conventional mobile network operators (MNOs), which deploy and maintain radio access infrastructure, MVNOs provide mobile services by purchasing access to existing network infrastructure and selling services to customers under their own brands. The model enables new operators to enter the market without the capital burden associated with building a nationwide radio network.

The new entrant follows the October 2025 entry of another wireless operator, which became the first MVNO to commence nationwide commercial operations in Nigeria.

This development makes the firm the second operator to have moved from the licensing stage to full commercial service, despite the NCC having licensed dozens of MVNOs under its five-tier framework.

However, the slow transition from licensing to actual commercial operations has been one of the main challenges confronting Nigeria’s MVNO experiment. Although the framework was introduced to lower barriers to entry and increase competition, prospective operators still need to secure agreements with host networks, establish billing and customer-management systems, obtain numbering resources, and meet regulatory requirements before commencing operations.

The NCC’s MVNO framework requires operators to have commercial wholesale agreements with host mobile network operators, with such arrangements covering technical, operational, financial, and service-level obligations.

With the NCC has allocating to the operator the 0724 number series for its sethe 0724 number series to the operator and eSIM channels.

Hence, the development is significant for consumers because the arrival of additional MVNOs could create more alternatives in a market traditionally dominated by MTN, Airtel, Globacom, and 9mobile.

However, the ability of the new operators to gain meaningful market share will depend largely on pricing, network performance, distribution, customer service, and the commercial terms negotiated with host networks.

The experience of the first entrant also illustrates the difficulty of challenging established operators. The first wireless operator launched its operations in October 2025, but subsequent industry reports highlighted the challenge of translating the new regulatory framework into rapid subscriber growth.

The central test for new entrants in the mobile wireless sector therefore extends beyond obtaining a licence or launching a SIM product. They must demonstrate that the virtual network model can deliver sustainable competition in a market where established operators already possess extensive infrastructure, large subscriber bases, and nationwide distribution networks.

The NCC’s latest industry data shows that MTN, Airtel, Globacom, and 9mobile remain the principal mobile operators, with MTN accounting for 100.86 million active subscriptions, Airtel 66.76 million, Globacom 23.63 million, and 9mobile 3.61 million as of July 2026.

The figures highlight the scale of the challenge facing new entrants. While MVNOs do not have to replicate the infrastructure investments of MNOs, they still need to convince consumers to adopt another network brand in an increasingly competitive market.

The growth of MVNOs will also put greater focus on the relationship between host networks and virtual operators. Since MVNOs depend on the infrastructure of MNOs for network access, the commercial terms, wholesale pricing, and quality of service available to them could ultimately determine how effectively they compete and survive in the nation’s telecom sector.