Mafab’s missed 5G milestone: Lessons for Nigeria’s telecom future

Nigeria made international news in 2021 when it was one of the first African countries to auction out 5G licences. This bold move demonstrated Nigeria’s determination to lead the way in next-generation connectivity. A newcomer to the telecom industry, Mafab Communications, was one of the license winners. In order to move the nation into the digital fast lane, Mafab was given the task of implementing 5G infrastructure alongside industry titan MTN. However, Mafab’s progress has mainly stagnated over the past few years, whilst MTN has made steady progress.

Despite several extensions, Mafab’s failure to reach its 5G rollout date has sparked questions about the larger dynamics of spectrum allocation, project monitoring, and the preparedness of up-and-coming companies to take on major telecom projects. After being given a five-month grace period to start deployment, Mafab has had trouble turning promises into reality. According to reports, there has been no official announcement of updated deadlines or progress, and none of the locations designated for their 5G rollout have been activated as yet. The silence is indeed deafening.

To be fair, the federal government and the Nigerian Communications Commission (NCC) have been trying to improve the telecom business environment in recent years by taking a number of aggressive measures. Growth, innovation, and diversity are the goals of initiatives to streamline licensing, promote infrastructure sharing, and reform Right of Way fees. However, the Mafab example shows that despite these efforts, there are still gaps, especially in the areas of project execution control, due diligence, and the financial architecture that supports such ambitious endeavours.

Mafab’s experience highlights the fine line that must be drawn between promoting domestic business and guaranteeing project viability. Capability assessments must go beyond boardroom presentations in order to foster opportunities for smaller or newer businesses to engage in important sectors. Obtaining permits is insufficient; operators must be able to demonstrate that they are operationally, technically, and financially prepared to handle the demands of such national responsibility.

Mafab’s poor performance is not just a problem with the company. It affects Nigeria’s digital ambitions more broadly. The 5G environment runs the danger of becoming unbalanced in the absence of prompt competition and capacity-building among several operators. When the market is unduly dependent on a small number of competitors, it might eventually limit consumer choices, impede price reductions, and stifle innovation.

Punitive measures alone, however, are not always necessary for the way forward. Mid-course corrections that promote performance without deterring involvement are possible. Structured collaborations between emerging licence holders and more seasoned tech companies, for example, might be a good example. Similar to this, re-examining the licence structure—possibly by including conditional guarantees, performance bonds, or phased cash commitments—can ensure that ambition and accountability are aligned.

Read also: Mafab: Timeline of a telco with dormant 5G licence

Furthermore, it might be advantageous for government financial institutions and the telecom regulator to play a more cooperative role. Obtaining foreign exchange and finance for telecom equipment is still quite difficult. Coordinated policy responses to these constraints could assist operators, particularly the smaller ones, in developing the capacity they require to deliver.

This incident should not become a reason to lose faith in the vision of expanding Nigeria’s digital horizon through inclusive participation. Instead, it should be seen as a learning curve. With proper institutional mechanisms, stronger hand-holding in the early stages, and more rigorous implementation frameworks, such lapses can be prevented in the future.

In the end, while Mafab’s delay is disappointing, it also serves as a critical mirror. It reminds stakeholders that the success of Nigeria’s telecom sector will depend not just on who wins the license—but on who delivers on the promise. And for that, both the public and private sectors must continue to evolve in how they plan, assess, and execute national projects of such scale and consequence.

Colonel Manish Kochhar is the CEO of Telenoetica Digital Innovation Africa Ltd (TDIAL), a Lagos based start-up and former Head of Optical Networks at Globacom. With a Master’s in Telecommunications and IT and a PG Diploma in AI-ML, he is a technology enthusiast who writes on technical and business matters