MTN Nigeria Communications Plc has confirmed it will not renew its one-year spectrum lease with Natcom Development & Investment Ltd (Ntel) when it expires in November. The lease covers 5 MHz FDD in the 900 MHz band and 10 MHz FDD in the 1800 MHz band across 17 states.
The company disclosed the decision in a filing to the Nigerian Exchange, noting that while the agreement will lapse, the company remains committed to strengthening its network.
“We remain committed to investing in infrastructure and partnerships that support the delivery of innovative and high-quality telecommunications services to Nigerians,” the telecom giant said in the statement.
The spectrum covered by this lease is important for mobile services. The 900 MHz and 1800 MHz bands are traditionally used for GSM, 3G and 4G LTE services in Nigeria, offering both voice and data capacity.
MTN originally obtained NCC approval to use Ntel’s spectrum to boost its network capacity and coverage. In fact, regulators in 2023 approved MTN’s lease of Ntel’s 900 MHz and 1800 MHz assets to enhance 3G/4G in 19 states, and that arrangement was extended early this year to nationwide coverage. As a result, MTN became the “de facto beneficiary” of Ntel’s most valuable spectrum.
The one-year deal now ending was a continuation of that strategy to meet growing traffic demands. MTN’s decision comes as the company lines up new spectrum resources.
On the same day it announced the Ntel lease expiration, MTN disclosed approval to lease additional spectrum from T2 Mobile (formerly 9Mobile). Effective 1 October 2025, the company will lease 5 MHz of 900 MHz and 15 MHz of 1800 MHz spectrum from T2 for three years.
This new T2 lease is part of a broader national roaming arrangement; MTN says the extra spectrum will let it handle increased network traffic from 9Mobile’s (T2’s) customers using MTN’s infrastructure.
In its regulatory notice, MTN described this as an “integrated approach, combining spectrum trade and national roaming” that underscores its commitment to industry collaboration and expanding broadband access.
In other words, MTN appears to be reallocating resources: it will give up the leased Ntel frequencies while securing similar or greater spectrum from T2 to continue growing its service quality and coverage.
MTN Nigeria: Spectrum leasing in Nigeria’s telecom industry
This move highlights a larger trend in Nigeria’s telecom market where operators frequently lease or trade spectrum to keep networks growing.
The country’s telecom regulator (NCC) has recently encouraged spectrum sharing and trading as part of its plans to boost connectivity. For example, the NCC approved MTN’s new spectrum lease from T2 this year and has been exploring spectrum auctions (including upcoming 5G/3.5 GHz auctions) under the National Broadband Plan.
Leasing allows companies like MTN to quickly access more airwaves without waiting for new licences or costly auctions. It can also support national roaming pacts: MTN’s arrangement with T2 is explicitly tied to a roaming deal to improve service continuity.
MTN’s announcement noted that its strategy “aligns with [its] Ambition 2025 strategy” of expanding network capacity in a cost-efficient way.
Ntel’s role in this ecosystem is noteworthy. It holds the legacy spectrum and infrastructure from the former state-run NITEL. Under the Asset Management Corporation of Nigeria (AMCON), the company has been mostly inactive as a mobile operator and has earned revenue primarily by leasing its spectrum to other carriers. Industry analysts observed that MTN, through these lease deals, effectively became the main user of its radio spectrum.
With this latest decision not to renew, Ntel will need to find other clients or exit the spectrum itself. Given Ntel’s financial struggles and government oversight, this could be a setback; analysts note that its assets have been underused and that leasing has been its “most visible activity”.
For MTN Nigeria, not renewing the lease likely reflects a shift to more strategic partnerships.
The company has invested heavily in its own network buildout and has other licensed spectrum, so it may now deem the leased Ntel frequencies unnecessary, especially now that it will add spectrum from T2.
MTN’s statement reassured investors that it will continue to invest in its network. “We remain committed to investing in infrastructure and partnerships,” it said.