The Nigerian Communications Commission (NCC) has granted approval for the renewal of the spectrum lease agreement between MTN Nigeria Communications Plc and Natcom Development and Investment Limited (NTEL). This renewal extends MTN Nigeria’s access to key frequency bands, enhancing its ability to provide improved telecommunications services across the country.
In a regulatory filing with the Nigerian Exchange Limited on Tuesday, MTN Nigeria’s company secretary, Uto Ukpanah, confirmed that the agreement covers NTEL’s 5MHz frequency division duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band across 19 states. The renewed agreement will take effect from May 1, 2025, and will last for two years.
The notice stated, “MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the Nigerian Communications Commission has approved the renewal of the spectrum lease agreement between MTN Nigeria and Natcom Development and Investment Limited.”
Expanded Coverage Across All States and FCT
In addition to the two-year renewal, the NCC has also approved a one-year lease expansion to extend the spectrum coverage to the remaining 17 states and the Federal Capital Territory. This expanded lease will commence on January 1, 2025, further broadening MTN Nigeria’s operational reach and enabling more comprehensive service delivery nationwide.
MTN Nigeria’s Chief Executive Officer, Karl Toriola, expressed satisfaction with the agreement, emphasizing its significance in enhancing the company’s service capabilities. “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.”
Implications for MTN Nigeria’s Operations
The renewal and expansion of the spectrum lease are critical for MTN Nigeria as it seeks to meet the increasing demand for data services and improve user experience. By leveraging NTEL’s frequency bands, MTN can boost the performance and reach of its 3G and 4G networks, addressing coverage gaps and increasing capacity in underserved areas.
This move also aligns with MTN’s broader strategy to maintain its leadership in the Nigerian telecommunications market. Enhanced network capacity is expected to support the growing reliance on digital connectivity for personal and business needs, particularly in a country where mobile internet usage continues to rise.
Regulatory Endorsement and Industry Growth
The NCC’s approval of the lease renewal reflects the regulator’s commitment to fostering a competitive and robust telecommunications sector in Nigeria. By facilitating agreements like this, the NCC ensures that spectrum resources are optimally utilised, enabling operators to deliver quality services and drive digital inclusion.
As one of Nigeria’s largest telecom providers, MTN’s strengthened access to these critical frequency bands underscores its role in advancing the nation’s digital transformation goals. With the growing demand for seamless connectivity, MTN Nigeria’s renewed spectrum lease positions the company to continue meeting the evolving needs of its customers.
The regulatory approval not only supports MTN Nigeria’s operational goals but also highlights the NCC’s proactive measures in ensuring that telecom operators have the resources needed to maintain and improve service delivery. This development is poised to further enhance Nigeria’s telecommunications landscape, driving innovation and connectivity across the country.
