Mafab to give up its 5G spectrum as Nigeria starts a bigger clean-up
If approved, the transfer would mark a significant reversal for Mafab, which paid $273.6 million in 2021 to secure a 100 MHz block.
Nigeria's Mafab Communications is planning to transfer its 5G spectrum holdings to MTN Nigeria, a move that could see Mafab exit the 5G market and part of a larger spectrum clean-up by the Nigerian Communications Commission (NCC). The proposed transfer includes Mafab's 2×20 MHz block in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band, both of which were purchased by Mafab for $273.6 million in 2021.
The transaction is awaiting regulatory approval and aims to ensure efficient use of scarce telecom spectrum. The NCC is seeking to promote spectrum discipline and efficiency by transferring valuable frequencies to operators with the infrastructure and demand to utilize them. Other companies, such as Megatech Engineering Limited and ntel, are also involved in the spectrum review process, transferring assets to operators better equipped to deploy them.
Mafab's expensive 5G bet proved challenging due to regulatory delays, difficulties connecting sites, and rising costs, limiting its ability to deploy the assets fully. Established operators like MTN and Airtel have since expanded their 5G networks, making Mafab's position particularly significant in the Nigerian market.
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