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Mafab Communications is seeking regulatory approval to transfer key spectrum holdings to MTN Nigeria in a transaction that could mark the end of its position as one of Nigeria’s 5G operators and trigger a wider redistribution of scarce telecom frequencies.
The proposed transaction covers Mafab’s 2×20 MHz holding in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band, according to people familiar with the matter. The transaction remains subject to regulatory approval.
If approved, the transfer would represent a significant shift for Mafab, which paid $273.6 million in 2021 to acquire a 100 MHz block during Nigeria’s first 5G spectrum auction and become one of the country’s initial 5G operators.
The proposed transfer also comes as the Nigerian Communications Commission (NCC) reviews how valuable spectrum is being utilised across the telecommunications industry.
According to people familiar with the process, the regulator is seeking to ensure that scarce spectrum resources are held by operators capable of deploying them efficiently rather than remaining underutilised.
“It’s a bigger clean-up than Mafab,” one person familiar with the matter said, adding that the regulator wants to ensure that “limited valuable spectrum is in the hands of those who need it.”
MTN Nigeria, Mafab Communications and the NCC did not immediately respond to requests for comment.
NCC steps up spectrum management
The NCC maintains frequency assignment tables covering major commercial bands, including 2.1 GHz, 2.3 GHz, 2.6 GHz and 3.5 GHz.
Its spectrum management framework also requires operators to provide utilisation and interference reports as part of efforts to promote efficient use of frequency resources.
The regulator states that its frequency management and assignment framework is designed to promote spectrum discipline while increasing efficiency and utilisation across the telecommunications sector.
Mafab is not the only operator whose spectrum assets are being affected by the broader review.
Megatech Engineering Limited, which acquired a 2.6 GHz spectrum licence from the NCC in March 2020, subsequently transferred the asset to Globacom in a transaction valued at more than ₦20 billion ($15.01 million), according to people familiar with the deal.
Megatech had initially pursued the 2.5/2.6 GHz band for national telecommunications operations. However, the spectrum did not result in the level of network deployment associated with established mobile operators.
Its subsequent transfer to Globacom illustrates the emerging role of Nigeria’s secondary spectrum market in moving valuable frequencies from holders with limited deployment capacity to operators with the infrastructure and customer demand to utilise them.
ntel also under broader spectrum review
NatCom Development and Investment Limited, which operates as ntel, is also understood to be part of the NCC’s broader spectrum review, although the specific changes being considered remain unclear.
ntel inherited several spectrum assets following its acquisition of the core telecommunications assets of the former NITEL/M-Tel in 2015.
The assets include 5 MHz of paired 900 MHz spectrum and 10 MHz of paired 1800 MHz spectrum across 19 states, as well as 2100 MHz spectrum supporting 3G and 4G services under its original national licence.
However, ntel’s operational and financial difficulties have constrained its ability to fully utilise the spectrum.
The company has subsequently sought to generate value from some of its underused frequencies through NCC-approved secondary-market arrangements with MTN Nigeria. These arrangements have allowed MTN to lease the 900 MHz and 1800 MHz spectrum to increase network capacity, while providing ntel with an avenue to monetise assets it has struggled to deploy.
The proposed Mafab transaction could lead to further changes in the distribution of spectrum among major operators.
One person familiar with the negotiations said MTN might not retain all of its existing spectrum holdings if it secures Mafab’s assets, potentially requiring the regulator to oversee a wider redistribution to prevent excessive concentration.
“There will be some musical chairs; if A gets X then he may have to relinquish Y,” the person said.
Mafab’s $273.6m 5G investment
Mafab’s position in the proposed transaction is particularly significant given the scale of its initial investment in Nigeria’s 5G market.
In December 2021, the NCC auctioned two 100 MHz blocks in the 3.5 GHz band. Mafab and MTN each secured one block, with both licences selling for $273.6 million after bidding. The NCC had set a reserve price of $197.4 million.
Mafab subsequently obtained a Unified Access Service Licence and numbering plan in July 2022, giving it the regulatory framework to operate as a full telecommunications provider.
However, establishing a network as a new entrant proved challenging.
Unlike established operators such as MTN and Airtel, which already had extensive tower infrastructure, fibre networks, backhaul and other telecommunications assets, Mafab had to develop much of its network infrastructure as a greenfield operator.
Regulatory delays, site connectivity challenges, foreign-exchange pressures and rising costs of imported telecommunications equipment added to the difficulties.
The company held its 5G launch events in January 2023, but infrastructure limitations constrained the pace of its commercial rollout.
Mafab later adopted a phased deployment strategy, initially focusing on Abuja and Kano before plans to expand into additional markets.
5G adoption increases as spectrum competition evolves
While Mafab has worked to build its network, established operators have continued to expand their 5G coverage and subscriber base.
Nigeria’s 5G adoption reached 4.61% of total mobile connections in June 2026, representing approximately 4.5 million to 5 million active 5G connections.
The proposed transfer of Mafab’s spectrum to MTN therefore comes at a time when demand for high-capacity mobile networks is increasing and the NCC is reassessing how Nigeria’s limited spectrum resources are allocated.
If approved, the transaction could reshape the distribution of key 2.1 GHz and 3.5 GHz frequencies while reinforcing the regulator’s focus on spectrum utilisation, efficient allocation and sustainable network deployment.
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