The proposed transfer of MAFAB Communications’ spectrum assets to MTN Nigeria is drawing renewed attention to how the value of one of Nigeria’s scarce telecommunications resources will be determined and disclosed.
MAFAB and MTN secured 100MHz each in Nigeria’s 3.5GHz spectrum auction conducted by the Nigerian Communications Commission (NCC) in December 2021. The two companies paid $273.6 million each for their respective lots, with MAFAB allocated the 3700–3800MHz block.
Recent reports indicate that MTN is in discussions to acquire MAFAB’s spectrum holdings, including its 100MHz allocation in the 3.5GHz band and a 2x20MHz allocation in the 2.1GHz band. The reported transaction remains subject to regulatory approval, while the financial terms have not been publicly disclosed.
The development has prompted calls from industry sources for greater transparency over the proposed transaction, particularly the valuation placed on MAFAB’s spectrum and the total consideration MTN would pay.
The NCC describes radio frequency spectrum as a scarce resource of significant economic value and says its spectrum-management framework is intended to promote efficient use, fair allocation, competition and appropriate pricing.
Against that background, industry stakeholders are asking regulators to clarify how the proposed transfer would be valued, what financial consideration is involved and how much revenue, if any, would accrue to the government under the applicable regulatory framework.
The concerns are also linked to MAFAB’s limited deployment of its 5G network since winning the spectrum licence. THISDAY reported that MAFAB had kept the spectrum largely underutilised and that negotiations with MTN were reportedly nearing completion, pending regulatory approval.
Some industry sources have made further allegations involving President Bola Tinubu, MTN Nigeria CEO Karl Toriola and senior government and regulatory officials. Those allegations have not been independently verified, and no evidence establishing the alleged arrangements has been presented in the available reporting.
There are also separate allegations concerning possible links between the MAFAB transaction and MTN’s proposed acquisition of additional shares in IHS Towers. These claims likewise remain allegations and should not be treated as established facts without supporting evidence.
The regulatory question is therefore increasingly focused on the proposed transaction itself: how MAFAB’s spectrum will be valued, whether the full consideration will be disclosed and whether the transfer meets Nigeria’s spectrum-management and competition requirements.
The NCC has previously stated that its spectrum policy seeks to ensure equitable and transparent allocation while generating appropriate revenue for government.
As the reported MAFAB-MTN discussions await regulatory consideration, attention is likely to remain on the terms of the deal and the extent to which the public can scrutinise the financial and regulatory basis for transferring the spectrum to another operator.
MTN’s position on the reported transaction had not been publicly detailed in the material cited, while regulatory approval remains a key requirement before any transfer can be completed.
