MTN’s proposed Mafab deal sparks spectrum debate

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Talks over the possible transfer of Mafab Communications’ 5G spectrum to MTN Nigeria are reopening debate over the value of the $273.6m spectrum holding and its implications for competition and investment in Nigeria’s next-generation mobile market.

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Industry sources who spoke to The PUNCH on Thursday confirmed that discussions over a possible sale had taken place, although no concrete deal had been reached and any transfer would require regulatory approval and engagement with other stakeholders.

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If Mafab’s spectrum moves to MTN, the operator, which already controls half of Nigeria’s mobile market, would potentially have more frequency resources to deploy alongside its existing network infrastructure.

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“The potential deal creates a difficult balance for the regulator. Additional spectrum could enable an established operator like MTN to improve service quality and deploy capacity more efficiently, while greater concentration of spectrum could alter the competitive position of operators that do not have comparable network infrastructure or financial resources,” Telecom consultant Ejikeme Onyeaso told The PUNCH.

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Mafab and MTN each paid $273.6m for 100MHz blocks in the 3.5GHz band after emerging as winners of the Nigerian Communications Commission’s 2021 5G spectrum auction.

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MTN subsequently paid an additional $15.9m at the assignment stage to secure the 3500–3600MHz block, while Mafab was assigned the 3700–3800MHz block without an additional payment.

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The auction was designed to support the introduction of 5G while widening the number of operators with access to high-capacity spectrum. MTN, Mafab and Airtel submitted bids for the two available 100MHz lots before MTN and Mafab emerged as the winners.

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The potential combination of Mafab’s spectrum with MTN’s extensive network and tower infrastructure could significantly strengthen the operator’s ability to expand capacity and coverage, according to an industry executive.

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“The deal could benefit MTN subscribers if the additional spectrum enabled the operator to improve network capacity and coverage, particularly as demand for mobile data continued to rise. It could also make the operator more attractive to investors,” the executive argued, adding that the move could increase pressure on competing networks.

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Nearly five years after the auction, Nigeria’s mobile market is developing at different speeds, with 5G adoption growing from its early stages while 4G continues to account for more than half of mobile connections. The divergence leaves operators balancing investment in newer networks with the immediate demands of their existing customer base.

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An industry executive familiar with the telecoms market, who requested anonymity because of the sensitivity of the discussions, questioned why Mafab had not developed a stronger independent ecosystem around the spectrum it acquired.

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The executive argued that the industry needed to understand the reasons for Mafab’s experience before assessing the implications of a potential transfer to MTN, while also questioning how the transaction could affect the spectrum position of other major operators, particularly Airtel and Globacom.

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“From a spectrum standpoint, we need to understand what position MTN put in, vis-a-vis other operators,” the executive, who also owns a telecoms firm, told The PUNCH.

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Our correspondent reached out to MTN Nigeria and Mafab Communications for comments on the deal but had not received responses as of the time of filing this report.

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Building a 5G network is largely expensive, and the return on investment is not necessarily strong enough to justify rapid expansion for a market like Nigeria, where not so many people can afford 5G-enabled devices.

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The NCC’s latest figures show that 5G accounted for 4.74 per cent of mobile connections in July 2026, compared with 54.31 per cent for 4G. The 5G share has risen from 0.12 per cent in July 2023, but 4G remains the dominant mobile broadband technology.

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Against that backdrop, one industry source questioned whether acquiring more 5G spectrum should come before a clearer assessment of how additional capacity would be used. “What does MTN need the 5G spectrum for?” the industry insider asked.

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The operator could require additional spectrum as its network expanded and data traffic increased, but the source questioned the economics of deploying more 5G infrastructure when the number of consumers with compatible devices remained relatively limited.

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The executive also pointed to continuing complaints about the quality and capacity of 4G services, raising questions about how networks would cope if consumers moved in large numbers to a technology capable of much faster data speeds.

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