Nigerian Businessman Musbahu Bashir’s Mafab moves to sell $273.6 million 5G spectrum asset to MTN

Mafab Communications, the Nigerian telecom company backed by businessman Musbahu Muhammad Bashir, is seeking to transfer key spectrum assets to MTN Nigeria, potentially ending its run as one of the country’s 5G network operators.

The proposed transaction involves Mafab’s 2×20 MHz spectrum holding in the 2.1 GHz band and a 100 MHz block in the 3.5 GHz band.

Mafab’s $273.6 million 5G licence

Mafab emerged as one of the two winners of Nigeria’s first 5G spectrum auction in December 2021, alongside MTN Nigeria, after outbidding Airtel Networks for one of two available 100 MHz lots.

The Nigerian Communications Commission set the winning price at $273.6 million for each lot. Both Mafab and MTN subsequently paid the full amount by the February 2022 deadline, while MTN paid an additional $15.9 million to secure its preferred 3500–3600 MHz block. Mafab was assigned the 3700–3800 MHz block at no additional assignment-stage cost.

The $273.6 million represents Mafab’s original spectrum acquisition cost and should not be interpreted as the consideration for its proposed sale to MTN, for which a transaction value has not been established in the information available.

Bashir’s telecom bet

Mafab was incorporated in July 2020 and is controlled by Bashir, chairman of Abuja-based Althani Group, whose interests include real estate, investment and financial services.

The company attracted national attention after its surprise emergence as a 5G licence winner, despite having limited visibility in Nigeria’s telecommunications market before the auction.

Mafab subsequently launched 5G services and was expected to build out its network under the NCC’s rollout requirements. The company received an extension to its original rollout deadline after delays obtaining its Unified Access Service Licence and numbering plan.

The proposed transfer to MTN would mark a significant shift from that expansion strategy, with the larger operator potentially adding Mafab’s spectrum holdings to its existing network resources.

MTN seeks additional spectrum capacity

MTN was already a winner of the 2021 auction and selected the 3500–3600 MHz block after paying the additional assignment-stage fee.

The proposed acquisition of Mafab’s spectrum would give MTN access to additional spectrum across the 2.1 GHz and 3.5 GHz bands, subject to the final terms of the transaction and regulatory clearance.

Mafab’s proposed exit comes after nearly five years of development since Bashir entered Nigeria’s telecom market with one of the country’s most expensive spectrum licences.

For MTN, the transaction could strengthen its spectrum position as data consumption and demand for higher-capacity networks continue to expand across Nigeria.

The regulatory approval process will determine whether the proposed transfer proceeds and the final structure of the transaction.