MTN, NTEL spectrum lease extension to boost Nigeria’s 3G, 4G coverage

The Nigerian Communications Commission (NCC) has approved the renewal of the spectrum lease agreement between MTN Nigeria Communications Plc and Natcom Development and Investment Limited (NTEL).

The new agreement now includes coverage in all states including the Federal Capital Territory (FCT). The agreement covers the lease of NTEL’s 5MHz frequency division duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band, which spans 19 states.

According to an update on the Nigeria Stock Exchange (NGX), MTN, with 80.38 million subscribers, noted that the renewal is for another two years, effective 1 May 2025.

It stated that the regulator approved a one-year lease expansion of the spectrums, covering the remaining 17 states and the FCT, effective January 1, 2025.

MTNN’s Chief Executive Officer, Karl Toriola, said: “We are pleased with the renewal of the spectrum lease agreement with NTEL, which now includes coverage for all states, including the FCT.

“The lease enables us to enhance our 3G and 4G user experience as we improve coverage and capacity by utilising the spectrums. This positions us to capitalise on the growing demand for data and improve the delivery of services to our customers.”

In May 2023, MTNN announced that the NCC had approved a spectrum lease transaction between it and NTEL for two years at a cost of N4.25 billion. At the time, Toriola noted that the deal would help the telco in delivering its Ambition 2025 strategy.

“The access to NTEL’s 900MHz and 1800MHz spectrums broadens our spectrum holdings and improves our 3G and 4G user experience as coverage and capacity will be enhanced by utilising these spectrums,” the CEO stated.
Recall that in the second quarter of 2023, MTN Nigeria took a significant step forward by approving a spectrum lease agreement with NTEL.

This deal allows MTN to lease two crucial spectrums – a 5 MHz Frequency Division Duplex and a 10 MHz FDD – which will enhance connectivity across 19 states in Nigeria.

Checks by The Guardian showed that the NCC currently puts 3G penetration at 9.4 per cent and 4G at 46.27 per cent. As of October 2024, 4G remained the dominant technology in the country, which had gulped several millions of dollars in terms of investments.