Mafab Communications is seeking to transfer its key spectrum holdings to MTN Nigeria in a transaction that could end its run as one of Nigeria’s 5G operators and signal a wider reshuffling of the country’s scarce telecom spectrum.
The proposed transaction covers Mafab’s 2×20 MHz holding in the 2.1 GHz band and its 100 MHz block in the 3.5 GHz band, according to people familiar with the matter. The transaction is still undergoing regulatory approval, one person said.
If approved, the transfer would mark a significant reversal for Mafab, which paid $273.6 million in 2021 to secure a 100 MHz block in Nigeria’s first 5G spectrum auction and become one of the country’s two initial 5G operators.
But the transaction is also part of a broader effort by the Nigerian Communications Commission (NCC) to ensure that valuable spectrum is being used efficiently rather than sitting underutilised, according to people familiar with the matter.
“It’s a bigger clean-up than Mafab,” one of those people told TechCabal. The person added that the regulator wants to ensure that “limited valuable spectrum is in the hands of those who need it.”
MTN Nigeria, Mafab Communications and NCC did not immediately respond to requests for comments.
The NCC maintains frequency assignment tables covering commercial bands including 2.1 GHz, 2.3 GHz, 2.6 GHz and 3.5 GHz, and its spectrum management system requires operators to submit utilisation and interference reports. The regulator says its frequency management framework is designed to promote spectrum discipline and increase efficiency and usage.
Mafab is not the only company caught up in this process.
Megatech Engineering Limited, which acquired a 2.6 GHz spectrum licence from the NCC in March 2020, subsequently transferred the asset to Globacom in a transaction valued at more than ₦20 billion ($15.01 million), according to information provided by people familiar with the transaction.
The company had initially pursued the 2.5/2.6 GHz band for national telecommunications operations, but the spectrum did not translate into the kind of network deployment associated with established mobile operators.
The transfer to Globacom illustrates how Nigeria’s emerging secondary spectrum market can move valuable frequencies from holders that are unable to fully deploy them to operators with the infrastructure and demand to put them to use.
NatCom Development and Investment Limited, which operates commercially as ntel, is also understood to be part of the NCC’s broader spectrum review, although the exact changes being considered remain unclear.
ntel inherited several spectrum assets when it acquired the core telecom assets of the defunct NITEL/M-Tel in 2015. These include 5 MHz of paired 900 MHz spectrum and 10 MHz of paired 1800 MHz spectrum across 19 states, alongside 2100 MHz spectrum for 3G/4G services under its original national licence.
However, ntel’s operational and financial challenges have limited its ability to fully deploy these assets. The company has instead sought to monetise some of its underused spectrum through NCC-approved secondary-market arrangements with MTN Nigeria, allowing MTN to lease the 900 MHz and 1800 MHz blocks to expand network capacity while giving ntel a way to generate value from spectrum it has struggled to utilise.
That arrangement could change if the NCC approves the proposed transfer of Mafab’s spectrum to MTN. One person familiar with the negotiations said MTN may not retain all of its existing spectrum holdings if it secures Mafab’s assets, suggesting the regulator could require a broader reshuffling to prevent excessive concentration.
“There will be some musical chairs; if A gets X then he may have to relinquish Y,” the person said.
Mafab’s expensive 5G bet
Mafab’s position is particularly significant because of the price it paid to enter Nigeria’s 5G market.
In December 2021, the NCC auctioned two 100 MHz blocks in the 3.5 GHz band. Mafab and MTN each emerged with a block after the bidding, with each lot selling for $273.6 million. The NCC had set a reserve price of $197.4 million.
Mafab subsequently obtained a Unified Access Service Licence and numbering plan in July 2022, allowing it to operate as a full telecommunications provider. But building a network from scratch proved difficult.
Unlike MTN and Airtel, which entered 5G with extensive existing towers, fibre networks, backhaul, and other infrastructure, Mafab had to build much of its network infrastructure from scratch as a greenfield operator. Regulatory delays, difficulties connecting sites, foreign-exchange pressures and the rising cost of imported telecom equipment added to the challenge.
The company held launch events in January 2023, but incomplete infrastructure constrained its commercial rollout. It later adopted a more phased approach, focusing deployment on Abuja and Kano before expanding to other markets.
While Mafab worked through those challenges, established operators continued expanding their 5G networks. 5G adoption in Nigeria grew to 4.61% of total mobile connections, representing roughly 4.5 million to 5 million active 5G connections, in June 2026.
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I am the CEO of 9JAGISTLAND.My name is Adedeji Timothy and my co-owner is Oyekola Damilare.This blog is born out of our passion to educating to people in all aspect of internet life.We are enthusiastic about writing posts and articles online.
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