MTN Secures NCC Approval to Lease Spectrum from T2 Mobile, Ends NTEL Deal in November 2025

MTN Nigeria has received regulatory approval from the Nigerian Communications Commission (NCC) to lease fresh spectrum resources from T2 Mobile Limited, the company formerly known as 9mobile. The three-year lease agreement, which takes effect on 1 October 2025, covers 5 MHz of paired spectrum in the 900 MHz band and 15 MHz in the 1800 MHz band. The move marks another milestone in MTN’s spectrum strategy, while also reshaping relationships in Nigeria’s telecommunications sector.

At the same time, MTN disclosed that it will not renew its existing spectrum lease with Natcom Development & Investment Limited (NTEL). That agreement, which has been central to MTN’s 4G capacity in certain regions, will run its course and expire on 29 November 2025.

This shift signals a significant reallocation of spectrum resources across operators, one that could influence service quality, competition, and network economics over the next three years.

How the New T2 Mobile Lease Works

According to MTN’s filing with the Nigerian Exchange (NGX), the NCC has approved the lease of:

• 5 MHz FDD at 900 MHz

• 15 MHz FDD at 1800 MHz

The agreement begins 1 October 2025 and runs until 30 September 2028.

The 900 MHz band is highly valued for its ability to cover wide areas and penetrate buildings, making it useful for voice and basic mobile broadband services. The 1800 MHz band, while slightly higher in frequency, delivers more capacity and is a workhorse for 4G networks. Together, this 20 MHz package positions MTN to handle rising demand from data-hungry users, while improving service quality in urban and semi-urban areas.

The lease complements a broader network-sharing arrangement between MTN and T2 Mobile, under which T2 gains national roaming access on MTN’s infrastructure. For T2, this helps offset its limited coverage footprint. For MTN, the spectrum lease ensures the company can support additional traffic while expanding its own capacity.

Why MTN Is Ending Its NTEL Lease

MTN’s existing spectrum arrangement with NTEL has been a stopgap solution for its capacity requirements. Under that lease, MTN accessed 5 MHz in the 900 MHz band and 10 MHz in the 1800 MHz band, supported by NCC approval. The arrangement provided MTN with supplementary spectrum that enhanced coverage and capacity in selected states.

That lease is set to expire on 29 November 2025, and MTN has now confirmed it will not renew the deal. Instead, the operator is shifting its resources toward the broader agreement with T2 Mobile.

The decision to exit the NTEL arrangement may be linked to a combination of scale, longevity, and strategic alignment. The T2 deal is national in scope, covers more spectrum, and runs for a longer period (three years compared to NTEL’s shorter commitments). For MTN, consolidating spectrum access into a larger and more predictable arrangement reduces uncertainty and strengthens long-term planning.

The Technical and Commercial Impact

For MTN Nigeria

The new lease significantly boosts MTN’s spectrum holdings in two of the most valuable frequency bands for 4G. By combining wide-coverage 900 MHz with higher-capacity 1800 MHz, MTN gains a balanced mix of coverage and performance. This is particularly important given Nigeria’s rapidly growing mobile data consumption, driven by video streaming, fintech apps, and social media.

The three-year tenure also provides stability. MTN can plan network investments around a known spectrum base, rather than relying on short-term leases. While the financial terms of the T2 lease have not been disclosed publicly, MTN has previously spent ₦4.25 billion for a shorter NTEL arrangement, which suggests the T2 deal represents a larger financial commitment.

For T2 Mobile

For T2 (formerly 9mobile), the agreement is more than just a revenue stream. By pairing the spectrum lease with a national roaming deal, T2 gains time to rebuild its market position under a new brand. With limited infrastructure compared to rivals, T2 can now offer nationwide services by leaning on MTN’s network, while monetising unused spectrum through the lease.

For NTEL

The expiration of the NTEL arrangement represents a loss of revenue and relevance in Nigeria’s spectrum leasing market. NTEL, which operates primarily on 4G LTE, has used spectrum monetisation as a business strategy. MTN’s pivot away from NTEL leaves the company with fewer options, unless it secures new partners or reinvents its commercial model.

Regulatory Context

The NCC’s approval of the T2 lease demonstrates its continued willingness to enable spectrum sharing and secondary market transactions. Nigeria’s telecoms market has historically been constrained by limited spectrum availability and high auction costs. By approving leases and spectrum sharing, the regulator is helping operators optimise resources without the need for new auctions.

However, there are potential competition concerns. MTN already commands the largest market share in Nigeria. By securing more spectrum while also hosting roaming traffic for T2, MTN strengthens its market position. If unchecked, this could reduce competitive pressure on pricing and service innovation. For now, though, NCC has deemed the arrangement beneficial to the wider market, given the improved service quality and network efficiency it enables.

What This Means for Consumers

For subscribers, the immediate impact should be improved network performance. MTN customers stand to benefit from expanded 4G coverage and better capacity, especially in urban centres where congestion is common. T2 Mobile customers, meanwhile, will gain access to nationwide roaming through MTN’s network, enhancing service quality outside T2’s limited footprint.

The true measure of success will be whether these improvements translate into more affordable and consistent service. Nigeria’s consumers are highly price-sensitive, and operators’ ability to manage costs while expanding capacity will shape their competitiveness.

What to Watch Next

Several questions remain open:

1. Financial terms: MTN has not disclosed how much it will pay T2 for the three-year lease. Given the scope of spectrum involved, the figure is likely to exceed what MTN paid NTEL in 2023.

2. Regulatory follow-up: Will NCC impose additional conditions to maintain competition, especially as MTN hosts T2 roaming traffic while also leasing its spectrum?

3. Market shifts: How will NTEL respond to the loss of MTN as a customer? Will it seek new partners or consider restructuring?

4. T2’s growth strategy: With roaming and lease revenues secured, will T2 reinvest in infrastructure to regain competitiveness, or remain dependent on MTN’s network?

MTN’s decision to secure a three-year spectrum lease from T2 Mobile while letting its NTEL lease expire in November 2025 reflects a broader strategy of consolidation and long-term stability. For MTN, the deal delivers critical 900 MHz and 1800 MHz capacity to support Nigeria’s surging data demand. For T2, it provides both revenue and nationwide service through roaming. For NTEL, it signals the end of a major partnership and raises questions about future direction.

As Nigeria’s telecoms sector evolves, spectrum leasing and network-sharing arrangements are becoming central to how operators compete. With NCC’s approval, MTN has reinforced its dominance, and the ripple effects will shape the market well into the next decade.