MTN Nigeria in Advanced Talks to Buy Mafab's 5G Spectrum Assets
By Aboki Forex —
MTN Nigeria has entered advanced negotiations to acquire the 5G spectrum assets of Mafab Communications Limited, a deal that will need the approval of the Nigerian Communications Commission (NCC) before it can go through. The talks are said to be close to finalisation, though the terms and consideration have not been disclosed.
The spectrum in question covers Mafab's 2×20 MHz holding in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band, a frequency range considered critical for high-capacity 5G services.
What Mafab is selling
Mafab and MTN each paid $273.6 million when they emerged as winners at the NCC's 3.5 GHz spectrum auction in December 2021. That figure represents Mafab's original acquisition cost and is separate from whatever MTN may pay in the current transaction.
Mafab was a surprise entrant in that auction. The company was incorporated in July 2020 and is controlled by businessman Musbahu Muhammad Bashir through the Abuja-based Althani Group. Its thin track record in telecoms raised early doubts about its capacity to finance and deploy a full 5G network.
It announced its 5G launch in January 2023, but ran into serious difficulty scaling the business. The NCC had earlier granted Mafab extra time to meet its rollout obligations after delays in securing its Unified Access Service Licence and numbering plan.
Why MTN wants the frequencies
MTN Nigeria launched its 5G network in September 2022 and has since been pushing data traffic through it. Extra spectrum would give the operator more capacity at a time when mobile data demand is climbing fast.
Consumers and businesses are consuming more bandwidth for video streaming, digital payments, social media and cloud-based services, and that load is straining existing network resources. Additional spectrum lets an operator carry higher data volumes without building as many new base stations, which makes it a valuable asset for a company with MTN's national footprint.
Questions for the market
The proposed transfer also raises fresh questions about the competitive logic behind the 2021 auction. The NCC designed that sale partly to introduce a new significant 5G player alongside MTN. Moving Mafab's frequencies to MTN would instead concentrate that spectrum in the hands of an operator that already holds a major share of Nigeria's mobile market.
Airtel Nigeria remains the other licensed 5G operator. It launched its service in June 2023 after acquiring a separate 5G licence.
Both MTN and the NCC did not respond to requests for comment before publication, according to reports. The final terms, consideration and regulatory outcome of the transaction remain subject to further discussions and NCC review.