Mafab Communications is in discussions to transfer key spectrum assets to MTN Nigeria, in a proposed transaction that could significantly alter the structure of Nigeria’s 5G telecommunications market.
The proposed deal involves Mafab’s 2×20MHz spectrum holding in the 2.1GHz band as well as its 100MHz allocation in the 3.5GHz band, according to industry sources cited by THISDAY. The transaction is still subject to regulatory approval. The proposed transfer comes nearly five years after Mafab and MTN emerged as winners of Nigeria’s landmark 5G spectrum auction conducted by the Nigerian Communications Commission (NCC) in 2021.
Both companies paid $273.6 million for their respective 100MHz spectrum lots at the auction. However, the $273.6 million figure relates to Mafab’s original spectrum acquisition cost and has not been confirmed as the amount MTN would pay under the proposed transaction. The consideration for the new deal has not been disclosed.
Deal awaits regulatory approval
Industry sources told THISDAY that discussions between the two companies were at an advanced stage and that the transaction would require approval from the relevant telecommunications authorities.
MTN and the NCC had been contacted for confirmation of the development, but neither had responded as of the time of THISDAY’s report.
If approved, MTN would obtain additional spectrum resources across the 2.1GHz and 3.5GHz bands, potentially increasing its capacity to handle growing mobile data traffic.
The proposed transfer also comes amid increasing demand for high-speed mobile connectivity in Nigeria, although 5G adoption remains considerably lower than 4G. The PUNCH reported that 5G accounted for 4.74 per cent of mobile connections in July 2026, compared with 54.31 per cent for 4G.
Mafab’s 5G journey
Mafab attracted significant attention in 2021 when it emerged alongside MTN as one of the winners of the NCC’s 3.5GHz spectrum auction.
The auction involved two 100MHz lots, with the bidding eventually reaching $273.6 million for each lot. MTN paid an additional $15.9 million at the assignment stage for its preferred 3500–3600MHz block, while Mafab received the 3700–3800MHz block without an additional assignment-stage payment.
MTN launched its 5G network in 2022, while Mafab subsequently announced its own 5G rollout after obtaining the necessary approvals and licences.
However, Mafab faced challenges expanding its network infrastructure and competing with established operators with larger subscriber bases and nationwide infrastructure.
The proposed transfer would therefore represent a major shift from Mafab’s original plan to operate as an independent 5G provider.
What the proposed transfer could mean for MTN
For MTN, acquiring additional spectrum could provide more frequency resources for network expansion and capacity as mobile data consumption continues to increase.
Industry observers have also raised questions about the implications of concentrating additional spectrum with an established operator. The PUNCH reported that the potential transaction has prompted debate over competition, spectrum concentration and the efficient use of telecommunications resources.
Any final transfer, however, would depend on regulatory assessment and approval by the NCC.
Until the regulator approves the transaction and the terms are formally disclosed, the final structure and financial value of the proposed deal remain uncertain.
