Reported by Ariajegbe Sylvia Esezobor
Mafab Communications has begun the process of transferring its key spectrum assets to MTN Nigeria, in a move that would mark the company's exit from active network operations and further consolidate MTN's dominant position in the country's telecommunications market.
The proposed transaction, first reported on Thursday, covers Mafab's 2×20MHz holding in the 2.1GHz band and its 100MHz block in the 3.5GHz band. The deal remains subject to approval by the Nigerian Communications Commission, which must assess the spectrum assignment and transfer alongside the terms and structure of the proposed arrangement. The consideration payable by MTN has not been disclosed. Industry sources monitoring the development said the deal could be sealed as early as October. "The deal could be sealed by next month. I can confirm that Mafab wants MTN to take up its 5G licence. The deal just requires NCC confirmation and it is done," a source told The Guardian. MTN Nigeria did not respond to enquiries seeking confirmation or denial of the development as of press time.
For Mafab, the proposed transfer represents a strategic pivot away from direct competition with Nigeria's established telecom operators. The company emerged alongside MTN as a surprise winner in the Nigerian Communications Commission's landmark 3.5GHz spectrum auction in December 2021, where both firms paid $273.6 million each for 100MHz of spectrum. MTN paid an additional $15.9 million at the assignment stage to secure the 3500–3600MHz block, while Mafab was assigned the 3700–3800MHz block without an additional assignment fee. The $273.6 million figure represents Mafab's original spectrum acquisition cost, not the value of the proposed transaction with MTN.
Mafab's entry into the telecoms market was one of the biggest surprises of the 2021 auction. Incorporated in 2020 and backed by businessman Musbahu Muhammad Bashir, chairman of the Abuja-based Althani Group, the company had limited visibility in Nigeria's telecoms sector before securing the 5G licence. Its successful bid transformed it overnight into a significant player in the country's next-generation mobile market, but it also saddled the company with a spectrum asset that required substantial investment in network infrastructure, deployment and customer acquisition. Mafab subsequently encountered difficulties obtaining its Unified Access Service Licence and numbering plan, prompting the NCC to grant an extension to its original rollout deadline. The company eventually launched commercial 5G services in Abuja in January 2023 and Lagos shortly afterwards, announcing plans to extend to Port Harcourt, Enugu, Kano and Kaduna. It attributed some of its rollout difficulties to the sharp increase in foreign exchange costs, which raised the naira cost of network equipment and deployment. In 2024, Mafab said it was continuing its network expansion and planned to deploy 102 operational sites in selected cities by the end of the first quarter of 2025.
For MTN Nigeria, absorbing Mafab's spectrum would significantly expand its network capacity at a time when data consumption is rising rapidly. MTN already operates one of the largest mobile networks and subscriber bases in Nigeria, with 96.98 million active subscriptions as of May 2026. The proposed acquisition would strengthen its spectrum position in two strategically important bands. Mafab's 2×20MHz in the 2.1GHz band could provide additional capacity for mobile services, while the 100MHz in the 3.5GHz band is particularly relevant to high-capacity 5G deployment. Spectrum is a finite resource, making additional holdings increasingly valuable as operators carry more traffic across their networks. Nigeria recorded more than 4 billion gigabytes of data consumption in the first quarter of 2026, while the NCC has said operators are expected to invest more than $1 billion in telecoms infrastructure during the year. MTN's data traffic rose almost 50 per cent year-on-year, underlining the pressure on network capacity.
The transaction, if approved, would reshape the competitive structure of Nigeria's 5G market. The 2021 auction was designed to introduce additional competition by bringing a new operator, Mafab, alongside MTN. A transfer of Mafab's spectrum to MTN would instead consolidate spectrum resources in the hands of an existing major operator. Airtel subsequently entered the 5G market after acquiring spectrum in 2023 for $316.7 million, alongside additional spectrum to strengthen its 4G network. The NCC's original 5G licensing framework was designed to accelerate deployment and expand high-capacity broadband services, with licensees expected to meet specified rollout obligations. The proposed transfer therefore goes beyond a change in ownership of spectrum assets and could influence how spectrum capacity is distributed among Nigeria's remaining 5G operators.
The regulatory dimension is central to the transaction. The NCC must assess and approve the spectrum assignment or transfer, alongside the terms and structure of the proposed deal. The regulator's decision will be important because spectrum licences are national assets administered under a framework designed to promote efficient use and competition. Nigeria's spectrum trading guidelines, unveiled in 2021, allow for the leasing and sharing of spectrum, with a seller required to have held the spectrum for a minimum of one year and both parties required to have sound regulatory standing. The final structure could also determine how Mafab's existing 5G operations and other regulatory obligations are treated.
The broader market context adds significance to the deal. Latest NCC figures show that 5G accounted for 4.74 per cent of mobile connections in July 2026, up from 3.94 per cent in January and 2.46 per cent in December 2025. 4G accounted for 54.31 per cent of connections, making it the dominant mobile broadband technology. Active telecoms subscriptions reached 192.23 million in June 2026, while broadband penetration rose to 56.79 per cent and internet subscriptions stood at 156.86 million. The growth in data consumption is putting additional pressure on operators to secure sufficient spectrum and upgrade their networks. For consumers, the immediate significance of the transaction will depend on how the additional spectrum is ultimately deployed. While 5G adoption is rising, more than half of mobile connections still rely on 4G or older technologies, highlighting the continuing importance of coverage, affordable smartphones and network investment alongside spectrum availability.
Mafab's proposed exit also provides a broader indication of the financial and operational demands involved in building a telecoms network in Nigeria. The company entered the market with one of the sector's largest spectrum investments but has struggled to achieve the scale of the established operators. For Bashir, the move would potentially bring a new phase to a telecom investment that began with one of the most expensive spectrum acquisitions in Nigeria's history. For MTN, it could provide additional capacity at a time when network quality has become increasingly central to maintaining market position. The transaction ultimately remains subject to regulatory clearance and final commercial terms, and the NCC's decision will determine whether one of the most consequential developments in Nigeria's 5G story proceeds as planned.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments