Mafab moves to transfer its 5G spectrum to MTN, subject to NCC approval

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Mafab Communications, which paid US$273.6m for 3.5GHz spectrum in 2021, is in talks to transfer its 5G and 2.1GHz holdings to MTN Nigeria.

Jurisdiction NigeriaPractice Mergers and Acquisitions, Technology, Media and TelecomsSector Telecoms

Mafab Communications is in talks to transfer its 5G spectrum to MTN Nigeria, THISDAY reported on 18 September 2026. The assets comprise 100MHz in the 3.5GHz band, for which Mafab paid US$273.6m in the December 2021 auction, and 2x20MHz in the 2.1GHz band. Any transfer requires the approval of the Nigerian Communications Commission (NCC).

Background

MTN and Mafab were the two winners of the 2021 3.5GHz auction, each paying US$273.6m, above the NCC’s reserve price of US$197.4m, TechCabal reported on 18 September. Mafab obtained a Unified Access Service Licence in July 2022. THISDAY reported that Mafab announced a 5G launch in January 2023 but that its service did not become functional. A Mafab spokesman, Adebayo Onibanjo, told THISDAY that “Mafab will ride on an existing telecom company to roll out its services to Nigerians on the 5G infrastructure.”

TechCabal placed the Mafab talks in a wider pattern, describing the NCC as cleaning up the airwaves. It reported that Megatech Engineering Limited’s 2.6GHz spectrum had been transferred to Globacom in a transaction valued at more than ₦20bn. It also reported that 5G accounted for 4.61% of mobile connections as of June 2026.

Why it matters

Spectrum is a licensed right, not a freely tradeable asset, so the key legal questions sit with the NCC: whether it treats the arrangement as an assignment, a lease or a sharing agreement, whether it charges fees or imposes conditions, and whether it reviews the effect on competition of adding more mid-band capacity to the largest operator. Mafab’s statement suggests a structure in which it retains a role and uses MTN’s network, which would raise questions about who holds the licence obligations, including coverage and rollout commitments attached to the original award.

For operators and investors, the transactions show that spectrum acquired at auction can be recycled when a licensee cannot deploy it, which makes secondary spectrum transactions a practical route for incumbents to add capacity. That has consequences for the value of spectrum as security, for the drafting of any transfer agreement (conditions precedent, price adjustment if the NCC imposes conditions, and treatment of the unexpired licence term), and for competing operators, who may argue that concentration of mid-band spectrum in one operator requires remedies. Lenders to smaller licensees should also note that an undeployed spectrum holding may be more valuable as a transferable asset than as a network business.