MTN Moves to Acquire Mafab 5G Spectrum in Nigeria

MTN Nigeria is in discussions to acquire key 5G spectrum assets held by Mafab Communications, a proposed transaction that could change the distribution of high-capacity spectrum in Nigeria’s telecommunications market.

The discussions involve Mafab’s spectrum holdings in the 2.1GHz and 3.5GHz bands and remain subject to regulatory approval. The financial terms of the proposed transaction have not been publicly disclosed.

The development comes nearly five years after MTN and Mafab each paid $273.6 million to win 100MHz blocks in Nigeria’s landmark 3.5GHz 5G spectrum auction.

What MTN is seeking to acquire

Industry sources cited by Nigerian media said the proposed transaction covers Mafab’s 100MHz holding in the 3.5GHz band as well as its 2×20MHz holding in the 2.1GHz band.

The 3.5GHz spectrum is particularly important for 5G because it can provide substantial network capacity, although the value of any spectrum depends on how operators deploy infrastructure and serve customers.

MTN already operates one of Nigeria’s largest mobile networks. Additional spectrum could give the company more capacity to handle growing data traffic and expand 5G services.

However, the proposed transfer is not yet an approved transaction. The Nigerian Communications Commission (NCC) would have to assess and approve the transfer and its terms before it could be completed.

How MTN and Mafab won the spectrum

The two companies emerged as winners of Nigeria’s 3.5GHz spectrum auction in December 2021.

MTN and Mafab each paid $273.6 million for 100MHz spectrum blocks.

MTN subsequently paid an additional $15.9 million at the assignment stage to secure its preferred 3500-3600MHz block. Mafab received the 3700-3800MHz block without the additional payment.

The auction was part of Nigeria’s effort to introduce and expand commercial 5G services.

Airtel later acquired a 5G licence, creating another major operator with access to the technology.

Mafab did launch 5G

The proposed transaction has renewed discussion about Mafab’s performance since obtaining its licence.

However, the NCC has previously rejected claims that Mafab failed to launch its 5G service.

The regulator said Mafab formally received its licence after paying the $273.6 million fee and subsequently launched 5G services in Abuja on January 24, 2023, and Lagos on January 26, 2023.

The NCC said the launch initially targeted six cities: Lagos, Abuja, Port Harcourt, Enugu, Kano and Kaduna.

The distinction matters because launching a network and achieving broad commercial adoption are different things.

The current debate is instead focused on the extent to which Mafab has developed its network and utilised the spectrum since the licence was awarded.

Why the proposed deal matters

Spectrum is a finite public resource used by telecommunications companies to provide wireless services.

When spectrum changes hands, the consequences can extend beyond the companies involved.

If MTN receives additional spectrum, the operator could have more frequencies available for increasing network capacity and deploying services.

The PUNCH reported that industry participants are also examining what the transfer could mean for competition because MTN already has a large share of Nigeria’s mobile market.

That does not by itself establish that the transaction would reduce competition. The effect would depend on the conditions imposed by the regulator, how the spectrum is used and how other operators respond.

Nigeria’s 5G market is still developing

NCC figures cited by The PUNCH show that 5G represented 4.74% of mobile connections in July 2026, compared with 54.31% for 4G.

The figures show that 5G adoption has increased substantially from its early rollout period but remains much smaller than 4G.

That creates an important commercial question for operators.

Building and maintaining 5G infrastructure requires significant capital, while the number of customers using 5G-compatible devices remains smaller than the overall mobile subscriber base.

Operators therefore have to balance investment in newer technology with the need to maintain and expand existing 4G networks.

What MTN could gain

For MTN, additional spectrum could provide more room to manage increasing data consumption.

More spectrum can allow an operator to increase capacity when supported by the necessary network infrastructure, although acquiring spectrum alone does not automatically improve service.

The company would still need to deploy compatible equipment, expand sites and backhaul capacity, and invest in other parts of the network.

The proposed acquisition could therefore become part of MTN’s broader network investment strategy if regulators approve it.

What it could mean for Mafab

For Mafab, transferring the spectrum would represent a significant change from the company’s original position as one of the winners of Nigeria’s first 5G auction.

The company entered the market alongside MTN as a new 5G licence holder rather than as one of the country’s established nationwide mobile operators.

The proposed transaction could therefore mark a shift away from operating the spectrum itself towards transferring the asset to an established network operator.

The terms of any final agreement will be important in determining the commercial significance of that change.

The regulator has the final say

The NCC’s approval will be central to the transaction.

The regulator would need to assess the proposed spectrum transfer, including the relevant frequencies, transaction structure and compliance with applicable licensing and spectrum rules.

Industry sources have indicated that the discussions are advanced, but neither the proposed transaction nor its financial terms have been publicly confirmed in full by the parties.

MTN and Mafab had not publicly confirmed the complete details of the transaction in the reports available at publication time.

Competition will be closely watched

The potential transfer has opened a broader discussion about how Nigeria manages scarce spectrum resources.

One argument is that unused or underutilised spectrum can be more productive when held by an operator capable of deploying it at scale.

Another concern is that consolidating spectrum with an already large operator could change the competitive balance between MTN and other networks.

Those are questions for the regulator and market participants to assess using the specific terms of the proposed transaction.

The NCC will ultimately have to balance efficient spectrum utilisation with the need to maintain a competitive telecommunications market.

What happens next?

The immediate next step is regulatory review.

Until the NCC approves the proposed transfer, Mafab remains the licence holder of the relevant spectrum assets.

The final transaction terms, including any payment between the companies, have not been disclosed.

For Nigerian consumers, the practical significance will depend on what happens after any approval.

If MTN acquires the spectrum and deploys it effectively, the additional capacity could support its network expansion. At the same time, regulators and competitors will be watching how the transfer affects spectrum concentration and competition.

For now, the MTN-Mafab arrangement remains a proposed transaction rather than a completed sale.