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The Nigerian Communications Commission (NCC) has approved the renewal and expansion of the spectrum lease agreement between MTN Nigeria Communications Plc and Natcom Development and Investment Limited (NTEL), a move expected to significantly boost 3G and 4G network coverage across the country.
This new agreement, which extends coverage to all 36 states and the Federal Capital Territory (FCT), involves the lease of NTEL’s 5MHz Frequency Division Duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band. Previously limited to 19 states, the lease now spans the entire nation, enabling improved connectivity.
Extended Lease to Drive Broader Coverage
According to an update from the Nigeria Stock Exchange (NGX), MTN Nigeria, with its 80.38 million subscribers, has secured a two-year renewal for the spectrum lease, effective May 1, 2025. Additionally, the NCC approved a one-year lease expansion, effective January 1, 2025, to cover the remaining 17 states and the FCT.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, expressed optimism about the agreement’s potential. “We are pleased with the renewal of the spectrum lease agreement with NTEL, which now includes coverage for all states, including the FCT.
“The lease enables us to enhance our 3G and 4G user experience as we improve coverage and capacity by utilizing the spectrums. This positions us to capitalize on the growing demand for data and improve the delivery of services to our customers,” Toriola said.
A Strategic Boost for Connectivity
In May 2023, MTN Nigeria announced NCC’s approval of the spectrum lease for two years at a cost of ₦4.25 billion. At the time, Toriola noted that the transaction aligned with MTN’s Ambition 2025 strategy, aimed at broadening spectrum holdings and enhancing the quality of service delivery.
The deal involves two key spectrums: a 5MHz FDD and a 10MHz FDD. These frequencies will significantly improve connectivity, particularly in the 19 states initially covered by the agreement, while also ensuring enhanced service delivery in the newly included regions.
Connectivity Investments Paying Off
Checks by The Guardian reveal that the NCC places Nigeria’s 3G penetration at 9.4% and 4G at 46.27% as of October 2024. Despite 4G being the dominant technology in the country, achieving this level of penetration required substantial investment, amounting to millions of dollars.
With this lease renewal, MTN Nigeria is poised to leverage the expanded spectrum to improve internet speeds and network capacity, furthering its commitment to advancing digital connectivity in Nigeria.
This strategic collaboration between MTN and NTEL underscores the importance of spectrum sharing and infrastructure optimization in bridging the digital divide and meeting the growing demand for reliable and high-speed internet across Nigeria.
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