Telecom industry sources have alleged that a series of transactions involving Mafab Communications, IHS Towers, and MTN Nigeria could ultimately make President Bola Ahmed Tinubu a major shareholder in MTN. The allegations come as Mafab Communications, one of Nigeria's two original 5G spectrum licence winners, is reportedly negotiating the transfer of its spectrum assets to MTN Nigeria. This development has raised questions about the ownership structure of MTN Nigeria.
The proposed transaction between Mafab and MTN covers Mafab's 100MHz holding in the 3.5GHz band and 2x20MHz allocation in the 2.1GHz band. The financial terms have not been disclosed, and the transaction requires regulatory approval from the Nigerian Communications Commission (NCC). Recent reports suggest that the deal could be concluded as early as October if regulatory approval is obtained. MTN Group is also moving towards completing its proposed $6.2 billion acquisition of IHS Towers.
The acquisition of IHS Towers by MTN Group would give the South African telecom giant control of the tower company across its major African markets. The Federal Competition and Consumer Protection Commission (FCCPC) has made approval conditional on MTN selling up to 30 percent of the Nigerian component of IHS to local Nigerian investors at market prices over time. MTN has said it is comfortable with the condition. The sources allege that the two developments, the Mafab transaction and the IHS takeover, should not be viewed in isolation.
Mafab emerged alongside MTN as a winner of Nigeria's 3.5GHz 5G spectrum auction in December 2021. The NCC officially confirmed in February 2022 that both companies had paid $273.6 million each for 100MHz blocks. MTN subsequently paid an additional $15.9 million at the assignment stage to obtain its preferred spectrum block. Mafab later launched its Mcom 5G service but struggled to build a significant nationwide network.
According to reports, Mafab is backed by businessman Musbahu Muhammad Bashir, who chairs the Althani Group. Reports say its 10-year licence, issued in 2022 and expiring in 2032, has remained largely unused. Meanwhile, Mafab is seeking regulatory approval for the transfer, with sources saying the deal could be completed as early as October. SaharaReporters had previously reported allegations linking Mafab to Tinubu.
In a May 2023 report, the newspaper reported allegations that former Communications and Digital Economy Minister Isa Pantami and former President Muhammadu Buhari's personal secretary, Sabiu “Tunde” Yusuf, were involved in moves to grant spectrum licences to companies linked to political associates during the final months of the Buhari administration. The sources specifically alleged that Mafab's original licence acquisition was financed through Alpha Beta Consulting LLP, a company long associated with allegations concerning Tinubu.
The telecom sources also questioned the circumstances under which Mafab obtained the 5G licence and subsequently sought to transfer its spectrum. Sources are now asking that Mafab's original financing be examined against this background. The allegations have significant implications for the ownership structure of MTN Nigeria, and regulatory bodies will be closely monitoring the developments.
Key points
- President Bola Ahmed Tinubu could become a major shareholder in MTN Nigeria through deals involving Mafab Communications and IHS Towers.
- The proposed transaction between Mafab and MTN covers Mafab's 100MHz holding in the 3.5GHz band and 2x20MHz allocation in the 2.1GHz band.
- MTN Group is moving towards completing its proposed $6.2 billion acquisition of IHS Towers.
