Mafab Communications is seeking to transfer key spectrum assets to MTN Nigeria. The move could end its run as one of Nigeria’s pioneer 5G operators. The proposed transaction covers Mafab’s 2x20 MHz holding in the 2.1 GHz band and a 100 MHz block in the 3.5 GHz band. The 10-year licence was issued in 2022. It expires in 2032. It has remained unused for four years. MTN is expected to pay Mafab. The transaction value has not been disclosed. Both companies paid $273.6 million at the December 2021 auction.
Nigeria’s 5G auction in December 2021 was a milestone. MTN and Mafab emerged as winners. MTN launched its 5G network in 2022. Mafab did not. The company struggled to commercialise. It cited funding and infrastructure challenges. The licence sat dormant. The Nigerian Communications Commission (NCC) has since cracked down on dormant spectrum. Operators must use or lose their allocations. The Mafab case is a test of that policy.
The transfer requires NCC approval. If approved, MTN would consolidate its 5G holdings. MTN already has spectrum in the 3.5 GHz band. Adding Mafab’s block would strengthen its position. The 2.1 GHz band is valuable for coverage. MTN could use it to expand rural 5G.
Mafab’s failure is instructive. Winning spectrum is not the same as deploying it. The company lacked the capital and technical capacity. It held the licence for four years without building a network. That is a waste of a national resource. The NCC’s crackdown is justified. Spectrum is scarce. It should be used.
The transaction also raises competition questions. MTN is the dominant operator. Acquiring more spectrum strengthens its dominance. Smaller operators like Airtel and Glo may object. The NCC must balance efficiency against competition. The approval process will be watched.
Winners: MTN, which gains spectrum. Mafab, which recovers value from an unused asset. The NCC, which demonstrates enforcement. Consumers, if MTN deploys the spectrum. Losers: Airtel and Glo, which face a stronger rival. Mafab’s reputation, which suffers. Taxpayers, if the auction proceeds were wasted. The 5G market, which loses a competitor.
Bottom Line: Mafab won spectrum and did nothing with it. Now it wants to sell. The NCC should approve the transfer if it serves consumers. It should also ensure that the failure is not repeated. Spectrum is not a trophy. It is infrastructure.