MAFAB Plan 5G Spectrum Transfer To MTN After $273.6m License Investment

Nearly five years after paying $273.6 million for a 5G spectrum licence, Mafab Communications is set to transfer key spectrum assets to MTN Nigeria, in a development that could reshape the country’s 5G market.

The proposed transaction involves Mafab’s 2x20MHz holding in the 2.1GHz band and a 100MHz block in the 3.5GHz band, according to industry reports. The transaction is, however, subject to regulatory approval, while details of the consideration payable by MTN have not been disclosed.

The development marks a major turn in Mafab’s telecoms journey, which began when the relatively new operator emerged alongside MTN as a winner of the Nigerian Communications Commission’s (NCC) 3.5GHz 5G spectrum auction in December 2021.

Both companies paid $273.6 million each for 100MHz of spectrum after the auction, while MTN paid an additional $15.9 million at the assignment stage to secure the 3500–3600MHz block. Mafab was subsequently assigned the 3700–3800MHz block.

The spectrum auction was initially seen as a major step towards introducing competition into Nigeria’s 5G market, with Mafab becoming the second operator, alongside MTN, to secure a 100MHz block in the 3.5GHz band.

However, Mafab’s rollout was delayed after it encountered difficulties obtaining some of the licences and regulatory approvals required to commence full operations. The NCC later extended the company’s rollout deadline.

Mafab eventually launched its 5G service commercially in Abuja in January 2023 and Lagos shortly afterwards, announcing plans to extend services to other cities, including Port Harcourt, Enugu, Kano and Kaduna. The company had also attributed some of the difficulties confronting its rollout to the sharp increase in foreign exchange costs, which raised the naira cost of network equipment and deployment.

In 2024, Mafab said it was continuing its network expansion and planned to deploy 102 operational sites in selected cities by the end of the first quarter of 2025.

The proposed asset transfer now comes against the backdrop of rapid growth in Nigeria’s demand for mobile data and increased investment by major telecom operators in network capacity.

Latest NCC figures show that 5G accounted for 4.74 per cent of mobile connections in July 2026, up from 3.94 per cent in January and 2.46 per cent in December 2025. The same data showed 4G accounting for 54.31 per cent of connections, making it the dominant mobile broadband technology in the country.

Nigeria’s overall telecoms market has also expanded. NCC data showed that active telecoms subscriptions reached 192.23 million in June 2026, while broadband penetration rose to 56.79 per cent. Internet subscriptions stood at 156.86 million during the month.

The growth in data consumption is putting additional pressure on operators to secure sufficient spectrum and upgrade their networks. Nigeria recorded more than 4 billion gigabytes of data consumption in the first quarter of 2026, while the NCC has said operators are expected to invest more than $1 billion in telecoms infrastructure during the year.

For MTN, acquiring Mafab’s spectrum could provide additional capacity as traffic increases and more customers migrate towards higher-speed services. The operator already holds a substantial position in Nigeria’s telecoms market and was the first operator to launch commercial 5G services in the country.

The transaction could also alter the competitive structure of Nigeria’s 5G market. While MTN and Mafab were the original winners of the 2021 auction, Airtel subsequently entered the 5G market after acquiring spectrum in 2023 for $316.7 million, alongside additional spectrum to strengthen its 4G network.

This leaves the regulatory dimension as a key part of the proposed transaction. The NCC’s original 5G licensing framework was designed to accelerate deployment and expand high-capacity broadband services, with licensees expected to meet specified rollout obligations.

The proposed transfer therefore goes beyond a change in ownership of spectrum assets and could influence how spectrum capacity is distributed among Nigeria’s remaining 5G operators and how quickly additional network capacity can be deployed.

However, for consumers, the immediate significance will depend on how the additional spectrum is ultimately deployed. While 5G adoption is rising, more than half of mobile connections still rely on 4G or older technologies, highlighting the continuing importance of coverage, affordable smartphones and network investment alongside spectrum availability.

MAFAB’s proposed exit also provides a broader indication of the financial and operational demands involved in building a telecoms network in Nigeria. The company entered the market with one of the sector’s largest spectrum investments but has struggled to achieve the scale of the established operators.

However, if the transfer is approved, it would bring to an end a significant chapter in Nigeria’s 5G rollout, while allowing MTN to consolidate additional spectrum capacity at a time when data traffic, broadband demand and pressure on network infrastructure continue to rise.