In a significant development for Nigeria’s telecommunications sector, MTN Nigeria Communications Plc, the nation’s leading mobile network operator, has announced a new spectrum lease agreement with T2 Mobile Limited, previously known as 9Mobile. The deal, disclosed in a corporate filing to the Nigerian Exchange Limited (NGX), follows regulatory approval from the Nigerian Communications Commission (NCC). This strategic move is poised to bolster MTN’s network capacity, enhance service delivery, and advance the company’s ambitious goals for digital inclusion and connectivity across Nigeria.
Details of the Spectrum Lease Agreement
Effective October 1, 2025, MTN Nigeria will lease spectrum bands from T2 Mobile Limited for a duration of three years. Specifically, the agreement includes 5MHz of frequency division duplex (FDD) in the 900MHz band and 15MHz FDD in the 1800MHz band. These spectrum bands are critical for expanding MTN’s network capacity, enabling the company to handle increased data traffic and deliver improved broadband services to its customers.
The spectrum lease is closely tied to MTN’s national roaming agreement with T2 Mobile. Under this arrangement, T2 Mobile customers will gain access to MTN’s extensive network infrastructure, allowing them to enjoy seamless connectivity in areas where T2 Mobile’s coverage may be limited. In return, MTN will leverage the additional spectrum to accommodate the anticipated surge in traffic from T2 Mobile subscribers. This collaborative approach not only optimizes resource utilization but also strengthens the operational synergy between the two telecom operators.
The 900MHz and 1800MHz bands are particularly valuable in the telecommunications ecosystem. The 900MHz band is well-suited for providing wide-area coverage, especially in rural and underserved regions, due to its ability to propagate signals over long distances and penetrate physical obstacles like buildings and trees. Meanwhile, the 1800MHz band offers higher bandwidth, making it ideal for delivering faster data speeds in urban areas with high population density. By securing access to these bands, MTN is strategically positioning itself to address diverse connectivity needs across Nigeria’s varied geographical and demographic landscape.
Strategic Alignment with Ambition 2025
Commenting on the development, MTN Nigeria’s Chief Executive Officer, Karl Toriola, described the spectrum lease as a pivotal milestone in the company’s journey toward achieving its Ambition 2025 strategy. This long-term vision, unveiled by the MTN Group, outlines a roadmap for transforming the company into a technology-driven platform that delivers innovative digital, financial, and communication services across Africa.
“The approval from the NCC allows us to leverage additional spectrum resources to expand broadband access in a cost-efficient and environmentally sustainable manner,” Toriola stated. “This transaction reflects our commitment to fostering collaboration within the telecom sector while promoting digital inclusion and delivering reliable, high-quality connectivity to our customers.”
The Ambition 2025 strategy emphasizes four key pillars: driving industry-leading connectivity, creating shared value, transforming customer experiences, and accelerating portfolio transformation. The spectrum lease agreement with T2 Mobile aligns seamlessly with these objectives. By securing additional spectrum, MTN can enhance its network infrastructure, reduce congestion, and deliver faster and more reliable internet services. This, in turn, supports the company’s goal of bridging the digital divide and empowering communities through access to transformative technologies.
Moreover, the partnership with T2 Mobile underscores MTN’s commitment to fostering collaboration within the telecom industry. Rather than competing solely for market share, MTN is embracing cooperative models such as spectrum sharing and national roaming to optimize resources and deliver value to customers. This approach is particularly significant in Nigeria, where the demand for data services is growing exponentially, driven by the increasing adoption of smartphones, digital platforms, and emerging technologies like 5G.
Non-Renewal of Ntel Lease Agreement
In the same corporate disclosure to the NGX, MTN Nigeria announced that it would not renew its existing spectrum lease agreement with Natcom Development and Investment Ltd (Ntel). The current agreement, which covers 5MHz FDD in the 900MHz band and 10MHz FDD in the 1800MHz band across 17 states, is set to expire on November 29, 2025. While the company did not provide specific reasons for the decision, it is likely part of a strategic realignment to optimize its spectrum portfolio and prioritize partnerships that align with its long-term objectives.
The decision to discontinue the Ntel lease may reflect MTN’s efforts to streamline its operations and focus on agreements that offer greater operational efficiency or strategic value. By redirecting resources to the T2 Mobile agreement, MTN can consolidate its spectrum assets and enhance its ability to meet growing customer demand. This move also highlights the dynamic nature of the telecommunications industry, where operators must continuously evaluate and adjust their strategies to remain competitive in a rapidly evolving market.
Implications for Nigeria’s Telecommunications Sector
The spectrum lease agreement between MTN Nigeria and T2 Mobile has far-reaching implications for Nigeria’s telecommunications landscape. Nigeria, with a population exceeding 200 million, is one of Africa’s largest and most dynamic telecom markets. The country has witnessed a surge in mobile penetration and data consumption in recent years, fueled by the proliferation of affordable smartphones, the expansion of mobile broadband networks, and the growing popularity of digital services such as mobile banking, e-commerce, and streaming platforms.
However, the industry faces several challenges, including limited spectrum availability, high infrastructure costs, and the need to extend coverage to rural and underserved areas. Spectrum, often described as the lifeblood of mobile telecommunications, is a finite resource that enables operators to transmit voice, data, and multimedia services. The efficient allocation and utilization of spectrum are critical to meeting the growing demand for connectivity and ensuring a high quality of service.
By leasing spectrum from T2 Mobile, MTN is addressing these challenges head-on. The additional spectrum will enable the company to expand its network capacity, reduce latency, and improve the overall user experience. This is particularly important in urban centers, where network congestion is a common issue due to high data usage. Furthermore, the national roaming agreement with T2 Mobile will allow the smaller operator to leverage MTN’s robust infrastructure, enabling it to compete more effectively in the market while delivering better services to its customers.
The agreement also highlights the NCC’s role in promoting a competitive and collaborative telecom ecosystem. The regulatory body has been proactive in encouraging spectrum sharing and other innovative approaches to address the industry’s challenges. By approving the MTN-T2 Mobile deal, the NCC is facilitating a win-win scenario that benefits both operators, their customers, and the broader economy.
Commitment to Infrastructure and Long-Term Growth
MTN Nigeria’s Company Secretary, Uto Ukpanah, emphasized the company’s dedication to sustaining long-term growth and creating value for shareholders. “MTN remains committed to investing in infrastructure and partnerships that will drive innovation and deliver sustainable benefits to our stakeholders,” Ukpanah said. “This spectrum lease agreement is a testament to our focus on enhancing network quality and expanding access to digital services across Nigeria.”
MTN Nigeria has a long history of investing heavily in its network infrastructure. The company operates one of the largest and most advanced mobile networks in Africa, with extensive 4G coverage and ongoing efforts to roll out 5G services in key cities. These investments have positioned MTN as the market leader in Nigeria, with a subscriber base of over 80 million and a dominant share of the country’s mobile data market.
The spectrum lease with T2 Mobile is part of a broader strategy to maintain this leadership position while addressing the evolving needs of customers. As data consumption continues to rise, driven by trends such as remote work, online education, and digital entertainment, MTN is prioritizing initiatives that enhance network capacity and reliability. The company is also exploring opportunities to deploy advanced technologies, such as 5G and Internet of Things (IoT) solutions, to unlock new revenue streams and support Nigeria’s digital economy.
Broader Context: The Role of Spectrum in Nigeria’s Digital Transformation
Spectrum management is a critical aspect of Nigeria’s journey toward digital transformation. The country’s National Digital Economy Policy and Strategy (2020–2030) aims to leverage technology to drive economic growth, create jobs, and improve the quality of life for citizens. Access to reliable and affordable connectivity is a cornerstone of this vision, as it enables individuals, businesses, and government institutions to participate in the digital economy.
However, the availability of spectrum remains a bottleneck in many markets, including Nigeria. The increasing demand for data services has put pressure on existing spectrum resources, prompting operators to explore innovative solutions such as spectrum sharing, leasing, and trading. These approaches allow operators to maximize the use of available spectrum while minimizing the need for costly infrastructure investments.
The MTN-T2 Mobile agreement is a prime example of how spectrum leasing can address these challenges. By sharing spectrum resources, operators can optimize their networks, reduce operational costs, and pass on the benefits to consumers in the form of better services and competitive pricing. This model also promotes competition by enabling smaller operators like T2 Mobile to expand their reach without incurring the prohibitive costs of building extensive network infrastructure.
Environmental and Social Considerations
In his remarks, CEO Karl Toriola highlighted the environmental sustainability of the spectrum lease agreement. By leveraging existing spectrum resources rather than deploying additional physical infrastructure, MTN is reducing its environmental footprint. The construction of new base stations and other network infrastructure can have significant environmental impacts, including energy consumption and land use. Spectrum sharing and leasing, on the other hand, allow operators to achieve greater efficiency with fewer resources.
This focus on sustainability aligns with global trends in the telecommunications industry, where operators are increasingly adopting green technologies and practices to minimize their environmental impact. For MTN, this is particularly important in Nigeria, where energy costs are high, and access to reliable power remains a challenge. By optimizing spectrum usage, the company can reduce its reliance on energy-intensive infrastructure, thereby lowering operational costs and contributing to a more sustainable future.
From a social perspective, the agreement supports MTN’s commitment to digital inclusion. Nigeria’s digital divide remains a significant challenge, with millions of people in rural and underserved areas lacking access to reliable internet services. By leveraging the 900MHz band, which is well-suited for long-range coverage, MTN can extend its network to remote communities, enabling them to access educational resources, healthcare services, and economic opportunities through digital platforms.
Challenges and Opportunities Ahead
While the spectrum lease agreement is a positive development, MTN Nigeria faces several challenges as it seeks to maintain its market leadership and drive growth. The telecommunications industry is highly competitive, with rivals such as Airtel, Glo, and emerging players vying for market share. Regulatory pressures, including compliance with NCC guidelines and policies, also require careful navigation.
Additionally, the rising cost of operations, driven by inflation, currency fluctuations, and energy expenses, poses a challenge for telecom operators in Nigeria. MTN has faced criticism in the past for tariff increases, and the company must balance the need to remain profitable with the imperative to keep services affordable for customers.
On the opportunity front, Nigeria’s young and tech-savvy population presents immense potential for growth. The country’s digital economy is expanding rapidly, with sectors such as fintech, e-commerce, and content creation driving demand for data services. MTN’s investments in network capacity and innovative partnerships position it well to capitalize on these trends.
The rollout of 5G technology is another key opportunity. While MTN has already launched 5G services in select cities, the additional spectrum from T2 Mobile could accelerate the expansion of its 5G network, enabling the company to offer cutting-edge services such as ultra-low latency applications, smart city solutions, and enhanced mobile broadband.
Conclusion
The spectrum lease agreement between MTN Nigeria and T2 Mobile Limited marks a significant step forward in the company’s efforts to enhance network capacity, promote collaboration, and drive digital inclusion. By securing access to the 900MHz and 1800MHz bands, MTN is well-positioned to meet the growing demand for data services while supporting its national roaming agreement with T2 Mobile. The decision to discontinue the Ntel lease reflects a strategic focus on optimizing resources and prioritizing high-value partnerships.
Under the leadership of CEO Karl Toriola, MTN Nigeria is aligning its operations with the Ambition 2025 strategy, emphasizing connectivity, sustainability, and innovation. The agreement underscores the company’s commitment to delivering reliable and high-quality services while fostering a collaborative and inclusive telecom ecosystem.
As Nigeria continues its journey toward digital transformation, initiatives like the MTN-T2 Mobile spectrum lease will play a critical role in ensuring that citizens across the country have access to the tools and opportunities of the digital age. With its robust infrastructure, strategic vision, and focus on stakeholder value, MTN Nigeria is poised to remain a leader in the telecommunications industry, driving progress and connectivity for millions of Nigerians.
