Nigeria’s VAS providers ‘on brink of extinction’

Simon Aderinlola, National Coordinating Consultant for the Wireless Application Service Providers Association of Nigeria (WASPAN), is voicing concerns about the inequitable treatment his association’s members are facing. Major operating companies are taking advantage of these smaller, local businesses by providing meager compensation, effectively threatening the survival of these invaluable Value Added Services (VAS) firms. Without timely intervention from the regulatory body, the tough operating conditions might result in WASPAN members being forced out of business. Aderinlola revealed these pressing issues in an interview during a stakeholders’ meeting arranged by the Nigeria Communications Commission (NCC) in Lagos.

WASPAN is a self-regulatory body of companies that have been licensed by the NCC. These firms have at least one connection with a mobile phone operator in Nigeria, providing value-added service (VAS). WASPAN comprises 20 out of the 100 licensed VAS companies in Nigeria.

Despite rising complaints of unsolicited texts and unauthorized charges, Aderinlola believes these issues can be resolved by ‘following the money stream’ and scrutinizing the origin of the intrusive messages. He suggests automated regulation and quick turn-around for customer complaints, taking inspiration from successful models in countries like South Africa. These improvements, Aderinlola believes, will significantly enhance consumer protection rules for VAS in Nigeria.

The intrusion of unlicensed foreign entities poses a real threat to the sub-sector of the telecoms industry in Nigeria. While rules have been put in place by the NCC to prevent foreign entities from operating without a VAS licence within the Nigerian territory, porous opportunities have enabled these entities to circumvent the rules and threaten local firms. Aderinlola urged the NCC to close these loopholes and intensify their scrutiny on what actually qualifies a company to be a VAS firm in Nigeria.

Furthermore, there have been concerns about larger, more established firms marginalizing smaller local VAS companies and taking over their market share. Aderinlola argues that after investing in research, design, testing, launching, and marketing a service, it is unjust for these small companies to only earn a minuscule portion of the income. Without these smaller companies, the NCC would have no one to regulate, he warns.

The plight of small VAS firms in Nigeria underscores the need for stricter regulations and more balanced commercial agreements to protect local businesses from exploitation and potential extinction.

Light edits were made in 2025 to improve clarity and relevance.