MTN’s proposed Mafab deal sparks spectrum debate

The potential transfer of Mafab Communications' 5G spectrum to Nigerian telecommunications giant MTN is reigniting a debate over the value and implications of the $273.6 million spectrum holding. Industry sources have confirmed that discussions over a possible sale have taken place, although no deal has been finalized. MTN, which currently commands half of Nigeria's mobile market, would gain more frequency resources to expand its network if it acquired Mafab's spectrum.

Telecom consultant Ejikeme Onyeaso explained to The PUNCH that the deal presents a challenging situation for regulators. While increased spectrum could improve service quality and capacity for an established operator like MTN, it could also alter the competitive landscape for operators with less network infrastructure or financial resources.

Mafab and MTN each paid $273.6 million for 100MHz blocks in the 3.5GHz band following the Nigerian Communications Commission's 2021 5G spectrum auction. MTN subsequently paid an additional $15.9 million for the 3500-3600MHz block, while Mafab was assigned the 3700-3800MHz block without extra payment. The auction aimed to support 5G deployment and expand access to high-capacity spectrum for multiple operators.

Analysts suggest that the potential combination of Mafab's spectrum with MTN's extensive network and tower infrastructure could significantly bolster MTN's capacity and coverage, benefiting subscribers and making the operator more attractive to investors. However, the move could also put pressure on competing networks.

The industry is curious about why Mafab has not built a stronger independent ecosystem around the spectrum it acquired and questions the reasons behind its experience. Furthermore, there is a debate about whether acquiring more 5G spectrum should precede a clearer assessment of how additional capacity will be utilized. Despite 5G accounting for only 4.74% of mobile connections in July 2026, compared to 54.31% for 4G, the technology's adoption is steadily growing.