Mafab Communications, the Nigerian operator owned by Musbahu Muhammad Bashir, is in talks to transfer its 5G spectrum assets to MTN Nigeria — five years after it paid $273.6 million for the licence at a 2021 auction conducted by the Nigerian Communications Commission (NCC).

The proposed move stems from Mafab's struggle to build a sizeable subscriber base and roll out physical network infrastructure, combined with the regulator's plan to withdraw unused spectrum and licences. Subject to scrutiny and regulatory approval by the NCC, the transfer would see MTN absorb Mafab's 100 MHz block in the 3.5 GHz band along with 2.1 GHz band licences. If completed, it would leave MTN and Airtel as Nigeria's only operators running commercial 5G services.

How Nigeria's 5G Auction Played Out

Nigeria three operators to launch 5G services, with Mafab and MTN each paying $273.6 million for 100 MHz blocks in the 3.5 GHz band. MTN later paid an additional $15.9 million at the assignment stage to secure the 3500–3600 MHz block, while Mafab was assigned the 3700–3800 MHz block without an additional payment. The 3.5 GHz band is the mid-band spectrum carriers worldwide have used for their first commercial 5G networks, prized for balancing high speeds with usable coverage.

The auction was designed to support the introduction of 5G and expand early access to the high-speed network across Nigeria. The NCC also deliberately limited the number of operators granted high-capacity spectrum, an approach intended to award licences only to operators ready to deploy the network — a screening test that, in Mafab's case, did not translate into an operating network.

To date, only MTN and Airtel have rolled out 5G services. Mafab Communications hosted a public launch event in January 2023 but has failed to roll out commercial service or deploy a single network mast, having built only 15 sites since its rollout began that year.

Building a telecommunications network from scratch is expensive. Although Mafab held the licence, it lacked the massive capital and the physical infrastructure — such as towers and base stations — required for a nationwide rollout. Scaling an independent network proved equally difficult, leaving the licence largely idle. MTN, by contrast, already operates the largest network footprint in Nigeria. For Mafab, the transfer is not a solution for staying in business; it is a route out of the Nigerian telecommunications industry altogether.

By moving Mafab's spectrum to the market leader, which already controls 51.3% of Nigeria's mobile market, MTN would gain additional frequency resources to deploy alongside its existing infrastructure. Frequency resources on their own deliver little without the towers and base stations needed to transmit from — an area where MTN holds a decisive advantage.

A Wide 5G Coverage Gap

Nigeria has a wide 5G coverage gap, and the deal represents a progressive step toward addressing it. According to the joint Quality of Experience (QoE) report by the NCC and Ookla, covering the second quarter of 2026, active 5G usage among capable devices stands at approximately 46.0% in Lagos, while Abuja has just passed the halfway mark at 53.1%. The figures show that half of qualified 5G devices remain unconnected even in the country's capital and largest city, underscoring how far Nigeria lags in reliable internet access.

The bulk of Nigeria's quality internet access is concentrated in three of the country's 36 states plus the Federal Capital Territory (FCT), a reflection of how difficult nationwide 5G expansion has proved. While coverage is significantly lagging even in the top three cities, the outlook for the remaining 34 states hangs in the balance.

Industry-level data points the same way. As of July 2026, 157.7 million Nigerians were connected to the internet, meaning 81% of phone users can get online. Yet only 4.74% are connected to the 5G network, with the remainder scattered across 2G, 3G and 4G — a distribution that corroborates the NCC–Ookla analysis.

What the Transfer Would Change

Spectrum acts as the highway for digital data. MTN users currently experience slow speeds or dropped connections when a tower is congested, but acquiring Mafab's 100 MHz block would allow the operator to essentially double its 5G highway capacity. For subscribers — including those on T2mobile — that would translate into significantly faster download and upload speeds, more seamless video streaming, and improved, stable connections.

The benefits would not be limited to 5G. The transfer also includes Mafab's 2.1 GHz spectrum block, a frequency band that is highly efficient for broadening existing 4G LTE network capacity. With about 54% of Nigerians still relying heavily on 4G and older networks, the acquisition would boost internet stability even for users without 5G-enabled smartphones.

Consolidation and Competition Concerns

MTN already controls 51.3% of Nigerian telecom users, leads with a 53.5% share of internet users, and dominates Fibre to the X (FTTX) with 176,468 of 319,735 connections. Through its proposed acquisition of IHS Towers, the operator is set to own much of the infrastructure that powers the connectivity on which competitors such as Airtel and T2mobile (9mobile) depend. T2mobile's revival and brand transition, in fact, were made possible by its spectrum share agreement with MTN.

The proposed transfer would further reduce market competition. Mafab had been expected to act as a direct, lower-cost competitor that kept large telcos such as MTN and Airtel on their toes. With Mafab exiting the 5G race, MTN solidifies its dominance, and reduced competition could eventually give major operators greater power over data pricing — making it harder for tariff rates to fall significantly in the near future and for subscribers to find alternatives.

The NCC is expected to review the spectrum transfer, assess the potential implications for the industry, and measure how the deal would benefit Nigeria's 195 million subscribers before any final approval is granted. Until that review concludes, Mafab's 100 MHz block remains unused, and the regulator's decision is effectively between clearing its move to an operator able to put it to work and letting it fall under the planned withdrawal of unused licences.