MAFAB Communications, now operating as MCOM, is seeking regulatory approval to transfer key spectrum holdings to MTN Nigeria, a transaction that could effectively end its attempt to build a standalone nationwide 5G network and significantly increase MTN’s spectrum capacity.
The proposed transaction covers MAFAB’s 100MHz block in the 3.5GHz band and a 2×20MHz holding in the 2.1GHz band, according to industry reports citing people familiar with the discussions.
The transaction has not yet been completed and requires approval from the Nigerian Communications Commission, NCC, making regulatory scrutiny a crucial next step.
Financial terms have also not been publicly disclosed.
Neither MTN Nigeria nor MAFAB had publicly confirmed a completed transaction when reports of the discussions emerged. Industry sources cited in the reports said discussions were at an advanced stage.
If approved, the deal would mark a significant shift in Nigeria’s 5G landscape, nearly five years after MAFAB emerged alongside MTN as one of the surprise winners of the country’s first 5G spectrum auction.
From 5G Challenger to Potential Spectrum Transfer
MAFAB entered Nigeria’s 5G race in December 2021 when it competed against established telecommunications companies MTN and Airtel for two available lots of spectrum in the 3.5GHz band.
Following 11 rounds of bidding, MAFAB and MTN emerged as winners, with each securing a 100MHz Time Division Duplex block for $273.6 million. The NCC subsequently confirmed both companies had paid the full winning price.
MTN paid an additional $15.9 million during the assignment stage to secure the 3500–3600MHz block, while MAFAB was assigned the 3700–3800MHz block without an additional assignment payment.
The NCC issued final letters of award to the two operators in 2022, setting the stage for commercial deployment.
MTN subsequently launched commercial 5G services in September 2022.
MAFAB received an extension to its initial deployment deadline and announced its commercial launch in January 2023, beginning with Abuja and Lagos.
Its emergence had initially been viewed as potentially introducing a new competitor into a telecommunications market dominated by established mobile network operators.
The reported spectrum-transfer plan suggests that strategy may now be changing.
MTN Could Gain Significant Additional Capacity
For MTN, acquiring MAFAB’s frequencies could provide additional capacity at a time when mobile-data consumption continues to place greater demands on telecommunications networks.
Spectrum is the radio-frequency resource operators use to deliver mobile communications services.
The amount and type of spectrum available to an operator can therefore influence network capacity, speed, coverage and its ability to accommodate growing data traffic.
The 3.5GHz band is particularly important because it has become one of the primary spectrum bands for 5G deployment globally.
Adding another 100MHz block could strengthen MTN’s ability to expand capacity, although the actual consumer impact would depend on how the spectrum is integrated and deployed following regulatory approval.
The proposed transfer of MAFAB’s 2.1GHz holdings would provide an additional layer of spectrum resources.
Competition Likely to Be Key Regulatory Question
The transaction also raises an important competition issue for the NCC.
Spectrum is a finite national resource, and regulators generally have to balance efficient utilisation with the need to preserve effective competition.
MAFAB’s entry into the 2021 auction initially created the possibility of an additional independent 5G operator competing against Nigeria’s established telecommunications companies.
A transfer to MTN would move valuable spectrum from the newer entrant to the country’s largest established mobile operator.
That does not automatically mean the transaction would harm competition. Concentrating spectrum in an operator with the capital, infrastructure and customer base to deploy it extensively could potentially improve utilisation and network capacity.
But the NCC would have to assess those potential efficiency benefits against the implications of giving an established operator additional spectrum resources.
The outcome could consequently influence the structure of Nigeria’s 5G market for years.
5G Share Climbs to 4.74%
The potential transaction comes as Nigeria continues gradually migrating towards newer mobile-network technologies.
Latest NCC statistics show that 5G accounted for 4.74 per cent of mobile connections in July 2026, up from 4.61 per cent in June and 3.17 per cent in July 2025.
That means 5G’s share increased by about 1.57 percentage points over the 12-month period.
The longer-term change has been considerably larger. In July 2023, 5G represented only 0.13 per cent of connections, according to the NCC’s historical series.
Despite that expansion, 4G remains by far the dominant technology.
It accounted for 54.31 per cent of connections in July 2026, while 2G remained substantial at 36.54 per cent. 3G accounted for 4.42 per cent.
The figures demonstrate that Nigeria’s transition to 5G is progressing, but the technology still represents a relatively small portion of the overall mobile market.
Cost of 5G Deployment Remains Major Challenge
Owning spectrum is only the first stage of building a 5G network.
Operators must also invest in base stations, fibre connections, transmission equipment, power infrastructure, data centres and other supporting systems before spectrum can be converted into commercially useful capacity.
Nigeria’s operating environment adds further costs through energy requirements, foreign-exchange exposure and the need to maintain infrastructure across a geographically large market.
Consumers also require compatible smartphones and other devices before they can use 5G services.
Those factors help explain why spectrum licences worth hundreds of millions of dollars can require substantially greater investment before operators achieve nationwide coverage and meaningful commercial returns.
For MAFAB, entering the market without the extensive infrastructure and subscriber base already available to established mobile operators represented an especially capital-intensive challenge.
Efficient Spectrum Use Takes Centre Stage
The reported deal also brings the question of spectrum utilisation back into focus.
For regulators, allocating spectrum successfully at auction is only part of the objective. The frequencies ultimately need to be deployed productively to improve connectivity, capacity and service quality.
The NCC’s original 5G licensing framework required successful bidders to meet deployment obligations, reflecting the government’s objective of turning spectrum allocation into actual network infrastructure.
A potential MAFAB-MTN transaction therefore presents the regulator with a broader policy question: whether transferring spectrum to an operator potentially capable of deploying it more extensively would improve utilisation without creating unacceptable competitive consequences.
Until regulatory approval is granted, MAFAB remains the holder of the affected spectrum and the proposed transaction should not be treated as completed.
But if the transfer proceeds, it would represent one of the biggest structural changes in Nigeria’s 5G market since the original 2021 auction—transforming MAFAB from the challenger that surprised the industry by winning spectrum into an operator potentially handing some of the country’s most valuable mobile frequencies to the market leader.
