Nearly five years after winning a major 5G spectrum licence, Mafab Communications is seeking to transfer key spectrum assets to MTN Nigeria, raising fresh concerns about competition in Nigeria’s telecommunications market.
Mafab, controlled by businessman Musbahu Muhammad Bashir through the Althani Group, secured one of two 100 MHz blocks in the 3.5 GHz band during Nigeria’s first 5G spectrum auction in December 2021.
The company and MTN each paid $273.6 million for their licences by the February 2022 deadline. MTN later paid an additional amount for its preferred frequency block, while Mafab received the 3700–3800 MHz allocation.
Mafab eventually obtained its Unified Access Service Licence, received the 0724 numbering range and launched limited services under the Mcom brand after delays and regulatory extensions. However, its network remained relatively small, with much of its spectrum underused.
The proposed transaction would involve Mafab’s 100 MHz holding in the 3.5 GHz band and a 2×20 MHz allocation in the 2.1 GHz band being transferred to MTN, subject to approval from the Nigerian Communications Commission (NCC).
The original $273.6 million licence cost is not the value of the proposed transaction. The amount MTN would pay for the assets has not been disclosed.
If approved, the transfer could allow MTN to put additional spectrum to use and expand its network capacity as demand for mobile data continues to grow. However, it would also reduce the number of independent operators holding significant 5G spectrum.
MTN crossed 100 million subscribers in 2026 and holds about 51.8 percent of Nigeria’s active mobile market, while Airtel has roughly 34 percent. The addition of Mafab’s spectrum could further strengthen MTN’s position.
Technology policy expert Jide Awe said Nigeria needs more competition in the telecommunications sector.
“There should be more competition… If they come to you, they will sit up. Others will sit up,” he said.
Awe also argued that smaller providers serving specific states or communities could contribute to a stronger competitive environment. He called for greater collaboration between telecom operators, technology developers and educational institutions to build a stronger local ecosystem.
Nigeria is also investing in telecommunications infrastructure. The Federal Government plans to deploy about 90,000 kilometres of fibre-optic cable under Project BRIDGE, while broadband penetration has moved into the mid-50 percent range.
However, fixed fibre connections remain a small portion of total internet subscriptions, leaving Nigerians heavily dependent on mobile networks.
Service quality remains another concern. Awe said he had experienced difficulties using mobile data for more than a week, highlighting the challenges consumers continue to face despite recent increases in telecommunications tariffs.
Deolu Ogunbanjo, national president of the National Association of Telecommunications Subscribers, said the rapid shift from voice services to data had outpaced infrastructure development.
“We are not really prepared for this explosion, the boom that came with data,” Ogunbanjo said.
He called for increased investment in telecommunications infrastructure and policies that encourage infrastructure providers to expand their networks.
Ogunbanjo also pointed to network congestion in busy commercial areas such as Balogun Market in Lagos, where connectivity problems can disrupt electronic transfers and other digital services.
For the NCC, the proposed Mafab transfer presents a regulatory challenge. Approving the transaction could put underused spectrum into active use and increase capacity on MTN’s network, while conditions on the deal could help preserve competition.
Possible measures include spectrum caps, sharing requirements, coverage commitments or requiring MTN to give up some existing spectrum holdings.
Mafab’s potential exit from the 5G spectrum market highlights the difficulty smaller operators face in competing with established telecommunications companies that already have extensive infrastructure and large customer bases.
As Nigerians increasingly depend on mobile data, digital banking, online education and other digital services, the outcome of the proposed transfer will have implications for spectrum use, network capacity and competition across the telecommunications industry.
