Reported by Weng Patrick Atokor l Journalist at Weng Global
Talks over a proposed transfer of Mafab Communications’ spectrum assets to MTN Nigeria are raising fresh questions about competition, network capacity and the future structure of Nigeria’s 5G market.
The proposed transaction, reported by The PUNCH and The Guardian, would give MTN access to additional spectrum currently held by Mafab, including Mafab’s 100MHz holding in the 3.5GHz band. The proposed transfer remains subject to regulatory consideration and approval, meaning the transaction should not be treated as completed.
The development is significant because MTN and Mafab were the two successful bidders in Nigeria’s landmark 3.5GHz 5G spectrum auction in December 2021. Both companies ultimately paid $273.6 million for their respective 100MHz spectrum lots.
What Is Being Proposed?
According to The Guardian, Mafab is seeking regulatory approval to transfer key spectrum assets to MTN Nigeria.
The reported assets include Mafab’s 100MHz holding in the 3.5GHz band as well as a 2-by-20MHz holding in the 2.1GHz band. The proposed transaction would therefore involve more than simply transferring a single 5G licence; it could give MTN additional frequency resources across important mobile bands.
The PUNCH reported that discussions over a possible sale had taken place but that no concrete deal had been reached at the time of its September 18 report.
The newspaper also reported that any transfer would require regulatory approval and engagement with relevant stakeholders. MTN Nigeria and Mafab had not responded to enquiries from The PUNCH at the time of publication.
The Guardian similarly reported that MTN had not responded to its enquiries seeking confirmation or denial of the development.
That distinction is important. The current reports concern a proposed transaction rather than a completed acquisition.
Why Mafab’s Spectrum Matters
The proposed deal has attracted attention because spectrum is one of the most important resources in mobile telecommunications.
Spectrum refers to portions of the electromagnetic frequency range used by telecommunications operators to transmit wireless signals. Operators need access to appropriate spectrum to provide mobile voice and data services and to expand network capacity.
Mafab obtained its 3.5GHz spectrum through Nigeria’s 2021 auction, in which MTN, Mafab and Airtel Networks participated.
The Nigerian Communications Commission subsequently confirmed that MTN and Mafab had each paid $273.6 million for their respective 100MHz lots. MTN also paid an additional $15.9 million during the assignment stage to secure its preferred portion of the spectrum.
The auction was a major step in Nigeria’s development of commercial 5G services.
Mafab’s possible transfer of those assets to an established operator therefore raises questions beyond the commercial interests of the two companies.
The Competition Question
One of the central issues is how additional spectrum in the hands of an established operator could affect competition.
The PUNCH reported that MTN already controls about half of Nigeria’s mobile market and quoted telecom consultant Ejikeme Onyeaso as saying that the potential transaction creates a difficult balance for the regulator.
Additional spectrum could allow MTN to expand capacity and improve the efficiency of its network. At the same time, concentration of additional spectrum and network resources could affect the competitive position of operators that do not possess comparable infrastructure or financial resources.
This does not by itself establish that the proposed transaction would reduce competition.
Rather, it identifies an issue that telecommunications regulators would need to consider when assessing whether and under what conditions a transfer should be approved.
The regulatory question is therefore not simply whether MTN can make productive use of additional spectrum. It also concerns how the transfer would affect the wider telecommunications market and other licensed operators.
Nigeria’s 5G Market Is Still Developing
The debate comes as 5G adoption in Nigeria remains considerably lower than 4G adoption.
According to figures cited by The PUNCH from the Nigerian Communications Commission, 5G accounted for 4.74 per cent of mobile connections in July 2026, compared with 54.31 per cent for 4G.
The figures nevertheless show significant growth in 5G adoption. The 5G share had increased from 0.12 per cent in July 2023 to 4.74 per cent in July 2026, according to the figures reported by the newspaper.
The figures illustrate an important feature of Nigeria’s telecommunications market: 5G is expanding, but 4G remains substantially more widely used.
That creates a complicated investment environment for operators.
Building and maintaining 5G networks requires substantial capital expenditure, while consumer adoption depends partly on the availability and affordability of compatible smartphones and other devices.
The Investment Challenge
The proposed transaction also raises questions about how telecommunications companies assess the value of additional spectrum.
Nigeria has a large and growing demand for mobile data, creating pressure on operators to increase network capacity.
However, the economic return from deploying additional 5G infrastructure depends on several factors, including consumer demand, device penetration, data usage, spectrum costs, infrastructure requirements and the broader economic environment.
The PUNCH reported that an industry source questioned whether acquiring additional 5G spectrum should come before a clearer assessment of how the extra capacity would be used.
The same report noted that network expansion could require additional spectrum as data traffic increases, while also highlighting the relatively limited proportion of consumers currently using 5G connections.
The debate therefore involves two potentially competing considerations: preparing networks for future demand while ensuring that investments correspond with present market conditions.
From the 2021 Auction to the Current Proposal
The origins of the current debate can be traced to Nigeria’s 2021 5G spectrum auction.
Three operators — MTN Nigeria, Mafab Communications and Airtel Networks — participated in the auction for two available 3.5GHz spectrum lots.
MTN and Mafab emerged as the successful bidders. The NCC later confirmed that both had paid $273.6 million for their respective 100MHz allocations.
The regulator subsequently issued final 5G spectrum award letters to the two companies in 2022 and expected the licensees to commence rollout under the terms of the licences.
The original auction was therefore designed to increase the number of operators participating in Nigeria’s 5G market.
The proposed transfer could represent a significant change from that original competitive structure if Mafab’s spectrum ultimately moves to MTN.
What Regulators Will Need to Consider
If a formal transaction is submitted, the Nigerian Communications Commission will have an important role in assessing the proposed spectrum transfer.
The Guardian reported that regulatory approval would be required for the transfer and assignment of the spectrum.
The regulatory assessment could involve questions about spectrum utilisation, the structure and terms of the proposed transaction, competition, consumer interests and compliance with applicable licensing and spectrum-management requirements.
However, the precise conditions that would apply cannot be established from media reports alone.
The NCC’s eventual position, if and when a formal application is made public, will therefore be important in determining the next stage of the process.
What the Deal Could Mean for MTN
For MTN, acquiring additional spectrum could provide more resources for network expansion and capacity management.
The PUNCH reported that industry observers believe additional spectrum could enable an established operator such as MTN to improve service quality and deploy capacity more efficiently.
The Guardian also reported that the additional spectrum could expand MTN’s network capacity as mobile data demand rises in Nigeria.
However, access to spectrum alone does not automatically translate into improved service for consumers.
Operators still need to invest in network equipment, fibre connectivity, sites, power, maintenance and other infrastructure required to turn spectrum holdings into usable network capacity.
What the Deal Could Mean for Mafab
For Mafab, a transfer of spectrum assets to MTN would represent a major change from the company’s original position as one of the new entrants into Nigeria’s 5G market.
Mafab was an unexpected winner alongside MTN in the 2021 auction, despite being a relatively new entrant to the telecommunications sector at the time.
Its emergence was significant because the auction created an opportunity for a new operator to participate in the development of Nigeria’s 5G market.
A transfer of its spectrum assets would therefore have implications for the competitive landscape, particularly if it reduces the number of independent operators holding substantial 5G spectrum.
The exact commercial structure of the proposed transaction, however, has not been publicly established in the reports reviewed for this article.
What Consumers Should Watch
For Nigerian consumers, the most important issue will ultimately be whether changes in spectrum ownership translate into better and more reliable telecommunications services.
Additional capacity could support faster data services and help operators manage increasing traffic.
But consumers will also be watching other factors, including network reliability, data costs, coverage, service quality and the availability of affordable 5G devices.
The PUNCH report also highlighted concerns about existing 4G network quality and capacity, raising a broader question about how networks will manage traffic if more consumers migrate to higher-speed technologies.
That means the spectrum debate is not solely about 5G.
It is also about how Nigeria’s telecommunications infrastructure will support the country’s rapidly expanding digital economy.
What Happens Next?
The immediate next step is regulatory scrutiny.
The reported transaction has not been presented as a completed acquisition, and the transfer would require the relevant regulatory processes to be completed.
The Guardian reported that industry sources expected the deal could potentially be concluded as early as October, while also stressing the need for NCC approval.
That reported timeline should be treated as an industry-source expectation rather than a confirmed regulatory deadline.
The key developments to watch are therefore any formal application by Mafab or MTN, an official response from either company, and any decision or statement from the Nigerian Communications Commission.
Until those developments occur, the proposed transfer remains a reported transaction under consideration rather than a completed change in ownership.
Why It Matters
The MTN-Mafab proposal comes at an important stage in Nigeria’s digital development.
The country is trying to expand broadband access, support digital businesses and improve connectivity while operators face the high cost of infrastructure investment.
Spectrum policy sits at the centre of those objectives because available frequencies determine how operators can expand wireless capacity.
The proposed transaction therefore presents regulators with several issues to weigh: efficient spectrum utilisation, investment incentives, network expansion, consumer interests and the structure of competition.
For MTN, the transaction could provide additional network resources.
For Mafab, it could mark a strategic change in its telecommunications ambitions.
For regulators, it presents a question about how spectrum should be managed as Nigeria’s mobile market evolves.
And for consumers, the eventual significance will depend largely on whether the outcome contributes to better connectivity, sufficient network capacity and continued investment across the sector.
At this stage, however, the reported deal remains subject to regulatory processes, and its final structure and implications cannot yet be determined.
Weng Global – Stories beyond borders
Sources
- The PUNCH — report on discussions over the proposed transfer of Mafab’s spectrum assets to MTN Nigeria and the competition debate.
- The Guardian Nigeria — report on Mafab’s proposed transfer of its 2.1GHz and 3.5GHz spectrum holdings to MTN and the regulatory approval process.
- Nigerian Communications Commission — official record confirming MTN and Mafab’s payment for the 3.5GHz spectrum licences.
- Channels Television — report on MTN and Mafab emerging as winners of Nigeria’s 2021 5G spectrum auction.
