By Annette Ikponmwonba | September 18, 2026
Key Points
· Talks over a possible transfer of Mafab Communications’ 5G spectrum to MTN Nigeria are reopening debate over spectrum concentration and market competition
· The $273.6m spectrum holding was won by Mafab in the NCC’s 2021 5G auction, alongside a matching award to MTN
· No concrete deal has been reached yet, and any transfer would require regulatory approval
· Industry voices warn that added spectrum could strengthen MTN’s dominance, given it already controls half of Nigeria’s mobile market
· Questions are being raised about why Mafab has not built a stronger independent ecosystem around its spectrum
· 5G adoption remains low in Nigeria, accounting for just 4.74 per cent of mobile connections as of July 2026, compared to 54.31 per cent for 4G
Main Story
Talks over the possible transfer of Mafab Communications’ 5G spectrum to MTN Nigeria are reopening debate over the value of the $273.6m spectrum holding and its implications for competition and investment in Nigeria’s next generation mobile market. Industry sources confirmed to The PUNCH that discussions over a possible sale had taken place, though no concrete deal has been reached, and any transfer would require regulatory approval along with engagement with other stakeholders.
If Mafab’s spectrum moves to MTN, the operator, which already controls half of Nigeria’s mobile market, would potentially gain additional frequency resources to deploy alongside its existing network infrastructure. Telecom consultant Ejikeme Onyeaso described the situation as a difficult balancing act for regulators, noting that while additional spectrum could help an established operator like MTN improve service quality and deploy capacity more efficiently, a greater concentration of spectrum could alter the competitive position of operators without comparable infrastructure or financial resources, Both Mafab and MTN 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 to secure the 3500 to 3600MHz block, while Mafab was assigned the 3700 to 3800MHz block without extra payment.
The Issues
The potential deal sits at the intersection of two competing regulatory priorities: fostering healthy competition among Nigeria’s telecom operators and allowing efficient use of scarce spectrum resources. The original 2021 auction was specifically structured to widen the pool of operators with access to high capacity spectrum, so a transfer that consolidates that spectrum back into the hands of Nigeria’s largest operator could be seen as running counter to that original policy intent, even if it is not explicitly prohibited by current rules.
There is also a deeper question hanging over Mafab’s original spectrum acquisition itself. An industry executive who spoke to The PUNCH questioned why Mafab had not developed a stronger independent ecosystem around the spectrum it won nearly five years ago, suggesting that understanding the reasons behind that outcome is necessary before fully assessing the implications of handing that spectrum over to MTN. The same executive raised further concerns about how such a transaction might affect the competitive spectrum positions of other major operators, particularly Airtel and Globacom, who were not part of this potential deal.
Underlying all of this is a broader economic reality about Nigeria’s telecom market. Building out 5G infrastructure remains expensive, and the return on that investment isn’t necessarily strong given how limited 5G device penetration remains among Nigerian consumers. This raises legitimate questions about the actual utility of additional 5G spectrum for MTN in the near term, especially when 4G still accounts for the overwhelming majority of mobile connections nationwide.
What’s Being Said
An industry executive argued that the deal, if it goes through, could benefit MTN subscribers by enabling improved network capacity and coverage as mobile data demand continues rising, while also potentially making the operator more attractive to investors. The same source acknowledged, however, that the move could increase competitive pressure on rival networks.
Skepticism about the deal’s underlying logic was also voiced directly, with one industry insider bluntly asking what MTN actually needs the additional 5G spectrum for, given the current state of device adoption in the market. The source questioned the economics of deploying more 5G infrastructure when the number of consumers with compatible devices remains relatively limited, while also pointing to ongoing complaints about the quality and capacity of existing 4G services as a sign that networks may already be struggling to meet demand on current infrastructure, Both MTN Nigeria and Mafab Communications were contacted for comment but had not responded as of the time of reporting.
What’s Next
Any formal transfer of spectrum would require regulatory approval from the Nigerian Communications Commission, along with broader stakeholder engagement, meaning the deal, if it proceeds at all, is likely still some distance from finalization, Attention will likely remain on how the NCC balances competing concerns around spectrum concentration versus efficient resource utilization, and whether competing operators like Airtel and Globacom raise formal objections or seek clarity on how their own spectrum positions might be affected by any eventual transaction.
Bottom Line
The prospect of MTN absorbing Mafab’s 5G spectrum holding has reignited a fundamental tension in Nigeria’s telecom sector between rewarding operational scale and preserving a level playing field for competition, with the outcome likely to shape how regulators approach spectrum policy as the country’s 5G rollout continues to lag behind more established 4G infrastructure.
