By Kingsley Samuel
The Nigerian Communications Commission, NCC, and the Corporate Affairs Commission, CAC, have introduced a new regulatory requirement mandating telecommunications companies to obtain prior approval before effecting significant changes in their ownership structures.
The directive, announced in a joint statement issued on Saturday, requires any transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of an NCC licensee to secure a Letter of No Objection from the telecom regulator before such changes can be registered by the CAC.
The two agencies said the measure takes immediate effect and is aimed at strengthening regulatory oversight, promoting transparency and preserving fair competition within Nigeria’s communications sector.
According to the statement, the requirement is backed by Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.
The NCC and CAC explained that the approval requirement also applies to a series of share transfers which, when aggregated, exceed 10 per cent of the total share capital of a licensed telecommunications company.
The statement read: “Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten per cent or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten per cent of the total share capital of the licensee, shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC.”
Under the new arrangement, the CAC will ensure that all applications for changes in shareholding structures involving 10 per cent or more submitted by telecommunications companies are accompanied by evidence of prior consent and approval from the NCC.
The agencies noted that the policy is designed to prevent direct or indirect anti-competitive practices that could distort the communications market.
They further stated that the initiative would strengthen investor confidence, enhance regulatory certainty and safeguard the long-term sustainability and stability of Nigeria’s telecommunications industry.
Reaffirming their commitment to a transparent business environment, the NCC and CAC pledged continued collaboration to ensure fair market practices and support the orderly development of the communications sector.
“The NCC and the CAC reaffirm their shared commitment to advancing a transparent, stable and competitive business environment in Nigeria.
Both agencies will continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector,” the statement added.
The statement was signed by NCC’s Director of Public Affairs, Nnenna Ukoha, and CAC’s Head of Public Affairs, Rasheed Mahe.
