Mafab Communications Limited is seeking regulatory approval to transfer key spectrum holdings to MTN Nigeria in a proposed transaction that could significantly reshape the company’s position in Nigeria’s 5G market.
The proposed deal covers Mafab’s 2×20 MHz holding in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band. The transaction is still subject to regulatory approval by the Nigerian Communications Commission.
Mafab secured its 100 MHz block in Nigeria’s first 5G spectrum auction in 2021 after paying $273.6 million, becoming one of the country’s two initial 5G operators alongside MTN Nigeria.
According to Brandspur Brand News, the proposed transfer would mark a major change for Mafab, which entered the 5G market with a substantial spectrum holding. The financial terms of the proposed transaction have not been disclosed.
The development also comes amid efforts to ensure that Nigeria’s limited telecom spectrum is deployed efficiently rather than remaining underutilised. Spectrum is a critical resource for mobile operators because it supports the delivery of voice, data and other telecommunications services.
If approved, the transfer would give MTN access to additional spectrum resources, potentially expanding the frequencies available for its network operations. However, the impact on competition, network capacity and consumers would depend on the conditions attached to the regulatory approval and how the spectrum is subsequently deployed.
Mafab and MTN emerged as the successful bidders for the 3.5 GHz spectrum blocks during the landmark 2021 auction. Mafab later launched its commercial 5G service in January 2023 after receiving an extension to its deployment deadline, while MTN began commercial 5G services in September 2022.
For millions of Nigerians who depend on mobile networks for communication, banking, business, education and other daily activities, any major change in spectrum ownership could have implications for network capacity and service delivery. Those effects, however, cannot be determined until the proposed transaction receives regulatory clearance and its implementation becomes clear.
For now, the transfer remains subject to the NCC’s review, and Mafab’s proposed exit from its current spectrum position has not been completed.
