Mafab Communications is reportedly seeking to transfer its 5G spectrum to MTN Nigeria, a move that could see one of the new entrants from Nigeria’s landmark 2021 5G auction exit the market and further consolidate spectrum holdings with the country’s largest mobile operator.
Reports by The Guardian, Techeconomy and Technext between 17 and 19 September cite unnamed industry sources on the proposed transaction. Neither Mafab nor MTN has confirmed the deal, while the Nigerian Communications Commission (NCC) has yet to make a public statement.
The reported transaction involves Mafab’s 100MHz block in the 3.5GHz band, for which the company paid $273.6 million at the NCC’s December 2021 auction. MTN paid the same amount for its own 100MHz block. The deal is also reportedly expected to include Mafab’s 2x20MHz holding in the 2.1GHz band.
The terms of the proposed transfer have not been disclosed. The Guardian quoted an industry source as saying the transaction requires NCC approval and could be completed as early as next month. The newspaper also reported that Mafab had previously engaged with Reliance Jio and Airtel Nigeria over the spectrum.
Mafab was one of two successful bidders in the 2021 auction, which was designed in part to introduce additional competition into Nigeria’s emerging 5G market. The company launched its service under the Mcom brand in January 2023 but has yet to achieve significant market scale.
The potential transfer comes as 5G adoption remains relatively low in Nigeria. 5G accounted for less than 5% of mobile connections in July, according to Techeconomy.
If approved, the transaction would reportedly leave MTN with 200MHz in the 3.5GHz band, making the NCC’s assessment of the proposed spectrum concentration a key issue for the market.
For broadcasters, pay-TV operators and other digital content businesses, the outcome could have wider implications. Mobile networks are becoming increasingly important for streaming, content distribution and audience reach, making the allocation and concentration of high-capacity spectrum an issue beyond the telecommunications sector.
