Mafab Communications is preparing to transfer its key spectrum assets to MTN Nigeria. The proposed deal would hand the market leader Mafab’s 100 MHz holding in the 3.5 GHz band and a 2×20 MHz allocation in the 2.1 GHz band. The Nigerian Communications Commission must approve the transfer.
Mafab was incorporated in July 2020. It had little visibility before it outbid established players including Airtel to secure one of two 100 MHz blocks in the 3.5 GHz band in December 2021. Alongside MTN, it paid $273.6 million for the licence by the February 2022 deadline. MTN later paid an additional sum for its preferred frequency block while Mafab received the 3700–3800 MHz assignment.
Mafab eventually obtained a Unified Access Service Licence, received the 0724 numbering range and launched limited services under the Mcom brand. But its network remained modest. The spectrum was largely underutilised for much of the licence period that runs until 2032.
MTN Nigeria crossed the 100 million subscriber mark in mid-2026. It holds roughly 51.8 per cent of the active mobile market. Airtel is a distant second at about 34 per cent. The two largest operators together control the overwhelming majority of lines. Adding Mafab’s spectrum would strengthen MTN’s capacity to meet surging data demand. It would also reduce the number of independent players with meaningful 5G resources.
Technology policy expert Jide Awe said Nigeria’s telecommunications market needs more players, not fewer. He pointed to Starlink’s entry as evidence that additional competition forces existing providers to improve. “There should be more competition,” Awe said. “If they come to you, they will sit up. Others will sit up”.
Awe advocates what he calls innovative regulation. Regulators must understand the infrastructure and competitive conditions required for innovation rather than relying solely on conventional rules. He also presses for stronger protection of telecommunications infrastructure as critical national assets, noting that vandalism of fibre and towers continues with insufficient accountability.
Deolu Ogunbanjo, national president of the National Association of Telecommunications Subscribers, shares the diagnosis. He noted that the rapid shift from voice to data has outpaced infrastructure development. Nigeria has far fewer telecommunications masts than comparable markets such as the United Kingdom. “We are not really prepared for this explosion, the boom that came with data,” Ogunbanjo said.
This mirrors the trajectory of Nigeria’s telecom sector since the liberalisation of 2001. New entrants challenge incumbents, but consolidation follows. The spectrum transfer is a test for the NCC. Approving the deal could put underused spectrum to work more quickly. Rejecting it or attaching stringent conditions could preserve a measure of spectrum diversity. Possible remedies include requiring MTN to relinquish other holdings, imposing spectrum caps, mandating sharing arrangements, or extracting firm commitments on coverage and quality.
Winners and Losers
Winners: MTN Nigeria, which gains additional spectrum capacity and strengthens its already dominant market position. Mafab Communications, which exits a spectrum holding it could not commercialise effectively.
Losers: Airtel and other operators, who face a widening resource gap. Consumers, who may see fewer competitive alternatives in the 5G market. The NCC, which must decide whether to prioritise efficient spectrum use or competitive market structure.
Bottom Line: Spectrum is a public resource. Concentrating it in the hands of the dominant operator may improve service quality in the short term. It also reduces the competitive pressure that drives long-term improvement. The NCC must decide which matters more