The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have jointly introduced a new compliance requirement governing changes in the ownership structure of licensed telecommunications companies operating in Nigeria.
In a joint statement signed by the Director, Public Affairs, at the NCC, Nnena Ukoha, and the Head, Public Affairs, at the CAC, Rasheed Mahe, the two agencies announced that significant shareholding changes in telecommunications firms will now require regulatory clearance before they can be registered.
The directive, which takes immediate effect, is anchored on the provisions of 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.
These provisions empower the NCC to review transactions involving its licensees and ensure healthy competition within the communications sector.
Under the new framework, any proposed transfer of ownership or control involving 10 per cent or more of the total share capital of an NCC-licensed company must first obtain a Letter of No Objection from the Commission.
The requirement also applies to multiple share transfers that may individually fall below the threshold but cumulatively exceed 10 per cent of the company’s total shareholding.
The statement further explained that the CAC will only process and register such changes in shareholding structures when applicants provide evidence of the NCC’s prior approval and consent.
According to the two regulatory agencies, the measure is designed to strengthen oversight of major ownership transactions in the telecommunications industry while preventing direct or indirect anti-competitive practices that could distort the market.
They noted that the policy is expected to enhance transparency, improve investor confidence, provide greater regulatory certainty, and support the long-term sustainability of Nigeria’s communications sector.
The two regulatory bodies reaffirmed their commitment to fostering a transparent, stable and competitive business environment, stressing that both agencies would continue to collaborate in promoting fair market practices and ensuring the orderly growth and development of the nation’s communications industry.
