Transparency concerns emerge over Nigeria’s 5G spectrum auction involving Mafab’s win
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Transparency concerns have emerged over the recently concluded Nigeria’s 5G telecommunication spectrum auction process conducted by Nigerian Communications Commission (NCC) in which MTN Nigeria, the subsidiary of Africa’s largest mobile network, South Africa’s MTN Group, and Mafab Communications, a largely unknown company in the industry locally and internationally, emerged as winners of the two licences on offer.
A group known as The Transparency Nigeria Group (TNG), an anti-corruption organisation has called for an immediate investigation into the business operations of Mafab Communications Limited, which won one of the two NCC’s 3.5 gigahertz (Ghz) spectrum licences.
TNG made the demand based on allegations that Mafab Communications was incorporated in 2020, has no comprehensive tax history, and appears to have been specifically set up by connected insiders for the purpose of acquiring one of the highly valued 5G licences.
The group also enjoined the federal government, particularly anti-corruption operatives to set up an investigation to establish if Musbahu Muhammad Bashir, chairman of Althani Group, MAFAB’s parent company, is a front for vested interests in the auction exercise.
It will be recalled that MTN Nigeria, Mafab Communications and Airtel Networks qualified as final bidders for the two 3.5 GHz spectrum that would facilitate the deployment of fifth generation (5G) technology for delivery of universal broadband services across the country.
The auction, held on December 13 at the Transcorp Hilton Hotel in Abuja, was conducted using the ascending clock auction system, with the bid price for the first round set at $199.3 million.
The intensely contested auction exercise reached a crescendo in the 11th round when the bid price rose to $275.9 million. At this stage, Airtel exited the race having posted a lower exit bid than the other contenders, thus leaving Mafab and MTN as winners of the auction bid eventually set at $273,600,000 for each lot of 100 MHz TDD.
The bidding process thereafter moved to the assignment stage where MTN offered $15,900,000 and was assigned lot one, while Mafab offered $11,120,000 for lot two.
Umar Danbatta, executive chairman of NCC, who announced the results, said the two winners are expected to pay by February 24, 2022, at the prevailing Central Bank of Nigeria (CBN) exchange rate.