MAFAB Seeks Regulatory Approval for 5G Spectrum Transfer to MTN

MAFAB Communications is seeking regulatory approval to transfer key spectrum assets to MTN Nigeria, in a proposed transaction that could significantly alter the structure of Nigeria’s 5G market.

The proposed transfer involves MAFAB’s 100MHz holding in the 3.5GHz band and its 2×20MHz spectrum holding in the 2.1GHz band, according to industry reports. The financial terms of the proposed transaction have not been disclosed.

The deal remains subject to approval by the Nigerian Communications Commission (NCC), which would be required to review the proposed spectrum assignment and transfer, as well as the structure and terms of the transaction. As of publication, neither MTN Nigeria nor the NCC had publicly confirmed the transaction.

From 5G Challenger to Proposed Spectrum Transfer

MAFAB, alongside MTN Nigeria, emerged as a winner of Nigeria’s landmark 3.5GHz 5G spectrum auction in December 2021.

Both companies paid $273.6 million for 100MHz spectrum lots. MTN subsequently paid an additional $15.9 million during the assignment stage to secure the 3500–3600MHz block, while MAFAB was assigned the 3700–3800MHz block.

MTN launched commercial 5G services in September 2022, while MAFAB commenced its commercial 5G rollout in January 2023 after receiving additional time to meet its deployment obligations.

The proposed transfer therefore represents a major development in MAFAB’s telecoms journey, coming almost five years after its entry into the 5G market.

Why MTN Wants the Spectrum

For MTN Nigeria, the acquisition could provide additional spectrum capacity to support rising mobile data traffic and network demand.

The 3.5GHz band is particularly important for 5G because it provides a balance between capacity and coverage, making additional spectrum valuable as operators expand high-speed services and accommodate growing data consumption.

The proposed acquisition would also allow MTN to deploy additional spectrum alongside its existing network infrastructure, potentially increasing capacity in areas experiencing heavy traffic. Industry reports have identified network capacity and growing data demand as key considerations behind the discussions.

The Regulatory Question

The proposed transaction places the NCC at the centre of the next stage of the process.

The Commission will have to determine whether the proposed transfer complies with applicable spectrum and licensing rules and assess its implications for spectrum utilisation and the broader telecommunications market.

The development also comes against the background of the NCC’s original objective for the 2021 5G auction: to make additional high-capacity spectrum available while encouraging the development of Nigeria’s 5G ecosystem.

A transfer of MAFAB’s spectrum to MTN would therefore change the distribution of spectrum awarded through that landmark auction.

Industry commentators have consequently raised questions about competition and spectrum concentration, although the ultimate regulatory outcome will depend on the NCC’s review.

What It Means for Nigeria’s 5G Market
Nigeria’s 5G adoption has continued to grow, increasing the importance of spectrum availability and network investment.

The proposed MAFAB–MTN transaction could give MTN additional capacity while potentially changing the competitive dynamics among operators.

For consumers, however, the practical impact would depend largely on how any additional spectrum is deployed, including whether it translates into improved capacity, coverage, reliability and higher-quality mobile broadband services.

For MAFAB, meanwhile, the proposed transfer marks a significant strategic development for a company that entered the market as one of the country’s first major 5G challengers.

The immediate next step is regulatory consideration. Until the NCC approves the transaction, the proposed transfer remains a transaction under consideration rather than a completed spectrum transfer.