Mafab Communications to sell $273.6m 5G Spectrum to MTN Nigeria

Indications emerged Thursday that Mafab Communications, a Nigerian telecommunications firm backed by businessman Musbahu Muhammad Bashir, is seeking regulatory approval to transfer key spectrum assets to MTN Nigeria.

The potential deal threatens to reshape the competitive landscape of the nation’s 5G market.

Information gathered showed that the proposed acquisition covers Mafab’s $273.6 million spectrum holdings.

Specifically, Mafab’s 2 by 20MHz spectrum block in the 2.1GHz band and its 100MHz holding in the 3.5GHz band.

Mafab emerged alongside MTN as a surprise winner in Nigeria’s landmark 2021 5G spectrum auction, where both companies individually paid $273.6 million for their respective 100MHz lots.

For Mafab, the transaction marks a strategic pivot away from directly competing with established telecom giants. For MTN Nigeria, absorbing these additional frequency bands will significantly expand its network capacity to keep pace with surging mobile data demand across the country.

The transaction remains subject to final approval by Nigerian telecommunications regulators.

No response from MTN on the enquiries sent by The Guardian to either confirm or deny the development as of press time. However, industry sources monitoring the development confirmed it and informed that the deal could be sealed as early as October.

“The deal could be sealed by next month, I can confirm that Mafab wants MTN to take up its 5G license. The deal just requires NCC confirmation and it is done. The regulator will have to access and approve the spectrum assignment and transfer, alongside the terms and structure of the proposed deal,” the source stated. (Guardian)