MTN’S POTENTIAL SPECTRUM ACQUISITION RAISES COMPETITION QUESTIONS

Discussions over a possible transfer of Mafab Communications’ 5G spectrum to MTN Nigeria have triggered fresh debate over competition, investment and the future structure of Nigeria’s mobile telecommunications market. Industry sources confirmed that talks have taken place, although no final agreement has been reached. Any transfer would also require approval from the Nigerian Communications Commission and engagement with relevant stakeholders. The spectrum in question is valued at $273.6m and could give MTN additional frequency resources to expand capacity alongside its existing network infrastructure.

MTN and Mafab each paid $273.6m for 100MHz blocks in the 3.5GHz band after winning the NCC’s 2021 5G spectrum auction. MTN later paid an additional $15.9m at the assignment stage to secure the 3500–3600MHz block, while Mafab received the 3700–3800MHz block without an additional payment. The auction was intended to support the rollout of 5G technology while increasing the number of operators with access to high-capacity spectrum. MTN, Mafab and Airtel had submitted bids for the two available 100MHz lots before MTN and Mafab emerged as the successful bidders.

Telecom consultant Ejikeme Onyeaso said the proposed transaction presents a regulatory balance between improving network performance and maintaining competition. He noted that additional spectrum could allow MTN to improve service quality, increase capacity and deploy its network more efficiently, but could also affect operators that do not have similar infrastructure or financial resources. Another industry executive said combining Mafab’s spectrum with MTN’s extensive network and tower infrastructure could help the company expand coverage and handle rising demand for mobile data, potentially benefiting subscribers while increasing competitive pressure on other networks.

The development has also raised questions about Mafab’s ability to build a stronger independent telecommunications operation around the spectrum it acquired. An industry executive familiar with the matter said the reasons for Mafab’s experience should be understood before the consequences of a possible transfer are assessed, particularly regarding the spectrum positions of Airtel and Globacom. The executive questioned what MTN’s additional spectrum requirement would mean for other operators. MTN and Mafab were contacted for their positions on the discussions, but neither had responded as of the time of filing the report.

The debate comes as 5G adoption remains relatively low compared with 4G in Nigeria. NCC figures showed that 5G accounted for 4.74 per cent of mobile connections in July 2026, rising from 0.12 per cent in July 2023, while 4G accounted for 54.31 per cent. Industry sources noted that building 5G networks requires significant investment, while the number of Nigerians able to afford 5G-enabled devices remains limited. Questions have therefore been raised about whether acquiring additional 5G spectrum should take priority over addressing existing capacity and quality concerns on 4G networks, especially as operators prepare for continued growth in data usage.