Airtel, Mafab, and MTN Nigeria have collectively invested approximately $820.8 million to acquire fifth-generation (5G) spectrums. This information was revealed by the Minister of Communications and Digital Economy, Isa Pantami, during his presentation at the 19th edition of the Scorecard series for the regime of President Major General Muhammadu Buhari (retd), covering the years 2015 to 2023. According to a copy of the presentation obtained by our correspondent, a 5G policy was launched in January of the previous year. It was highlighted that 5G services are now operational in at least 225 sites across eight states in Nigeria.
The document stated, “Our mandate was to focus on the deployment of 4G Networks. However, in line with our commitment to proactiveness and innovation, we conducted 5G trials, developed a National 5G Policy, auctioned the spectrum, and commenced commercial deployment of 5G across Nigeria.” President Muhammadu Buhari officially unveiled and launched the National Policy on January 25, 2022. During the auction process, MTN, Mafab, and Airtel each acquired a lot of 100 MHz from the 3.5GHz spectrum, generating $820.8 million for the Federal Government. Currently, 5G services are available in at least 225 sites across eight states in Nigeria.
The National 5G policy aims to facilitate the effective deployment of 5G technology across major urban areas by 2025. In December 2021, MTN Nigeria and Mafab Nigeria Communications Limited emerged as winners of a 5G auction after approximately eight hours and 11 rounds of bidding. The bidding commenced at $199.37 million, exceeding the reserve price of $197.4 million set by the Nigerian Communications Commission (NCC). The auction concluded with each available lot selling for $273.6 million, with MTN paying an additional $15.9 million to secure the preferred Lot One, while Mafab was assigned Lot Two at no extra cost.
In October of last year, the NCC set the reserve price for new 5G spectrums at $273.60 million, with plans to issue two additional 5G licenses. Airtel Network Limited emerged as the sole bidder for its 3.5GHz spectrum band for 5G deployment in January of this year. During a recent one-day ministerial retreat in Abuja, organized by the Federal Government for the management and board members of Nigerian Communication Satellite, the need for revenue-generating agencies to devise innovative strategies for revenue generation without relying on the Federal Government was emphasized. The Minister noted that the government is dissatisfied with the ongoing payment of salaries to government-owned agencies that are meant to generate revenue. He stated, “Government cannot continue to pay salaries to revenue-generating agencies and companies. NigComSat must come up with new strategies to increase revenue generation.” He urged the staff to support the board and management in making NigComSat a self-sustaining government company.
Comments are closed for this story.