MTN Nigeria Communications PLC (MTN Nigeria) has announced the renewal of its spectrum leasing agreement with Natcom Development and Investment Limited (NTEL), following approval by the Nigerian Communications Commission (NCC).

This renewal continues a partnership that began in 2023 when MTN Nigeria first announced that the NCC had approved a spectrum leasing agreement with NTEL.

The initial agreement allowed MTN Nigeria to lease two critical spectrum: a 5 MHz frequency division duplex (FDD) and a 10 MHz FDD, thereby improving connectivity across 19 states in Nigeria.

By leveraging these spectrums, MTN Nigeria aims to significantly improve the user experience for 3G and 4G services, while expanding network coverage and capacity.

The renewed agreement, effective May 1, 2025, includes a two-year extension for the lease of NTEL’s 5 MHz FDD in the 900 MHz band and 10 MHz FDD in the 1800 MHz band, now coverage in the same 19 states.

For other states, the NCC has approved a one-year lease extension for these spectrums, effective January 1, 2025.

The disclosure stated: “Furthermore, the NCC approved a one-year leasing extension of the spectrums, covering the remaining 17 states and the Federal Capital Territory (FCT), effective January 1, 2025.”

CEO Comments

The CEO of MTN Nigeria, Karl Toriola, has expressed satisfaction over the recent renewal of the spectrum lease agreement with Natcom Development and Investment Limited (NTEL).

In a statement, he underlined the importance of this agreement, saying: “We are pleased with the renewal of the spectrum lease agreement with NTEL, which now includes coverages for all states, including the FCT.

Toriola then explained the benefits of the agreement, highlighting its impact on the quality of service.

He noted that the lease would enable MTN Nigeria to enhance its 3G and 4G user experience by improving coverage and capacity through the use of spectrum.

He added: “This allows us to capitalize on the growing demand for data and improve service delivery to our customers.

History

In the second quarter of 2023, MTN Nigeria took a significant step forward by approving a spectrum leasing agreement with Natcom Development and Investment Limited (NTEL).

• This strategic agreement allows MTN to lease two crucial spectrums: a 5 MHz frequency division duplex and a 10 MHz FDD, which will improve connectivity across 19 states in Nigeria.
• The total investment for this transaction was N4.25 billion, a figure detailed in a corporate action filed by the company, as reported by Nairametrics.
• This amount includes all associated costs, including taxes, regulatory fees and various ancillary fees. The lease should notably last two years, starting May 1, 2023.

In September 2023, MTN reaffirmed its commitment to improving network performance by announcing that the Nigerian Communications Commission (NCC) had approved its acquisition of 2.6 GHz spectrum.

This new addition aims to significantly increase network capacity, thereby improving the customer experience by providing users with faster and more reliable service.

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