MTN Nigeria is in advanced discussions to acquire the 5G spectrum assets held by Mafab Communications Limited, a move that would require approval from the Nigerian Communications Commission (NCC) before completion. The negotiations between the two companies are reportedly close to finalisation, according to ThisDay.
Spectrum Details and Background
The spectrum in question includes Mafab's 2×20 MHz allocation in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band, the latter being a key frequency range for high-capacity 5G services. Both MTN and Mafab each paid $273.6 million when they emerged as winners of the NCC's 3.5 GHz spectrum auction in December 2021. That figure reflects Mafab's original acquisition cost and is separate from whatever MTN may pay in the current transaction, details of which have not been disclosed.
Mafab, a company incorporated in July 2020 and controlled by businessman Musbahu Muhammad Bashir through the Abuja-based Althani Group, was a surprise entrant in the 2021 auction. Its limited track record in telecoms raised early doubts about its ability to finance and deploy a full 5G network. The company announced its 5G launch in January 2023 but encountered significant difficulties scaling its operations. The NCC had previously given Mafab additional time to meet rollout obligations after delays in securing its Unified Access Service Licence and numbering plan.
Implications for MTN Nigeria
For MTN Nigeria, which launched its 5G network in September 2022, the acquisition could provide extra spectrum capacity at a time when mobile data demand is rising sharply. Nigerian consumers and businesses are using more bandwidth for video streaming, digital payments, social media and cloud-based services, putting pressure on existing network resources. Additional spectrum can allow an operator to carry higher data volumes without having to build as many new network sites, making it a valuable asset for a company with MTN's national footprint.
However, the proposed deal raises questions about the competitive logic behind the 2021 auction. The NCC designed that auction partly to bring a new significant 5G player into the market alongside MTN. Transferring Mafab's spectrum to MTN would instead consolidate those frequencies with an operator that already holds a major share of Nigeria's mobile market. Airtel Nigeria also entered the 5G market, launching its service in June 2023 after acquiring a separate 5G licence.
Regulatory and Market Response
Punch reports that it sought comment from both MTN and the NCC, but neither had responded before publication. The final terms, consideration and regulatory outcome of the proposed transaction remain subject to further discussions and NCC review. Earlier, Legit.ng reported that MTN Nigeria has alerted its customers to fake offers circulating online that falsely claim to give out free 25GB data as part of the company's 25th anniversary celebrations. The warning came through MTN's official support account on X, where the company urged subscribers to be cautious of fraudulent posts and links promoting the anniversary data bundle. MTN clarified that eligible subscribers can redeem the 25GB data bundle.
