Mafab wants out of 5G spectrum as Nigeria rethinks who gets to use it

Mafab is seeking to transfer its 3.5 GHz and 2.1 GHz spectrum to MTN, nearly five years after paying $273.6 million for a 5G licence. The deal could also affect how small businesses access mobile connectivity. Mafab Communications is looking to transfer part of its spectrum to MTN Nigeria, according to people familiar with the deal. The proposed transfer covers 100 MHz in the 3.5 GHz band and 2×20 MHz in the 2.1 GHz band. The deal still needs approval from the Nigerian Communications Commission (NCC).

Mafab paid $273.6 million for its 100 MHz block in December 2021. It won one of two blocks sold in Nigeria's first 5G spectrum auction, with MTN paying the same amount for the other block. Mafab was expected to use the spectrum to build a new mobile network. Almost five years later, it is considering transferring those assets to a company that already has one of Nigeria's largest networks.

Building the network proved difficult

Buying the spectrum was only the first expense. Mafab still needed towers, fibre, backhaul, sites and network equipment. Unlike MTN and Airtel, it did not have a large network that could support the 5G rollout. The company launched its 5G service in 2023, but the rollout remained limited.

It later focused on markets including Abuja and Kano while working on its wider deployment. The cost of building the network also rose as the naira weakened and imported telecom equipment became more expensive. Nigeria's 5G market has also grown gradually. NCC figures show that 5G accounted for 4.61% of Nigeria's mobile connections in June 2026. That represents roughly 4.5 million to 5 million connections. For Mafab, the numbers meant a large spectrum bill followed by another large bill for the infrastructure needed to use it.

The NCC is reviewing other spectrum holders

The Mafab transaction comes as the NCC reviews spectrum holdings across the telecoms industry.

People familiar with the process say the regulator wants to see whether valuable frequencies are being used. Other companies could also face changes if their spectrum remains underused. Mafab is not the only example.

Megatech Engineering Limited acquired a 2.6 GHz spectrum licence from the NCC in 2020. It later transferred the asset to Globacom in a deal valued at more than ₦20 billion, according to people familiar with the transaction. Ntel is another case. The company inherited spectrum after acquiring the core assets of the former NITEL/M-Tel business in 2015. Ntel's financial and operational problems have made it difficult to deploy all of those frequencies. Some of its spectrum has instead been made available to MTN through secondary-market arrangements. MTN gets additional capacity, while ntel has a way to earn from spectrum it has struggled to use.

MTN could have to give up spectrum

If the Mafab deal is approved, MTN could gain additional spectrum. It may not, however, be allowed to simply add those frequencies to its existing holdings. One person familiar with the discussions said the NCC could require MTN to give up some of its current spectrum if it takes over Mafab's assets.

“There will be some musical chairs; if A gets X then he may have to relinquish Y,” the person said. That would turn the deal into a wider reshuffle of spectrum rather than a straightforward transfer from Mafab to MTN. Mafab and MTN did not immediately respond to requests for comment. The NCC had also not commented.

What does this mean for SMEs?

Spectrum decisions can sound like something that only matters to telecom companies. For small businesses, the effect can be much more ordinary. A retailer taking card payments needs a reliable connection. So does a courier tracking deliveries, a freelancer working with overseas clients or a small company using cloud-based accounting and business software. If MTN uses the additional spectrum to increase capacity in areas where its network is under pressure, SMEs could see fewer interruptions and more reliable connections.

That could help with mobile payments, video calls, cloud applications, online ordering and communication with customers. But the transfer itself does not guarantee better service. MTN would still have to deploy the capacity. Where it is deployed will also matter. A business in Lagos may see a different result from one in Kano or a smaller town.

Mafab's 5G bet has changed

Mafab entered the 5G market alongside MTN after spending $273.6 million on spectrum. It then had to build a network while competing against operators that already had towers, fibre and other infrastructure. Now it is seeking to transfer the spectrum to one of those established operators. The NCC still has to approve the transaction, and the final terms could change.

For SMEs and other customers, the important part will be what happens after the transfer: whether the spectrum is actually used to add network capacity where businesses and consumers need it.