The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced fresh compliance measures requiring telecommunications companies to obtain regulatory approval before carrying out major changes in their ownership structure.
Under the new directive, any transfer of shares amounting to 10 per cent or more of the total share capital of a licensed communications company must first secure a Letter of No Objection from the NCC before such changes can be registered by the CAC.
The development was disclosed in a joint statement issued on Sunday by Nnena Ukoha, Director of Public Affairs at the NCC, and Rasheed Mahe, Head of Public Affairs at the CAC.
The agencies said the move is backed by 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.
According to the statement, the new requirement takes immediate effect and applies to all proposed transfers of ownership or control involving 10 per cent or more of a licensee’s total shareholding.
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 (10%) or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten per cent (10%) 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.”
The agencies explained that the CAC will no longer process requests for significant changes in the shareholding structure of telecom companies unless evidence of prior NCC approval is provided.
“By this measure, the CAC will ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies, are duly supported by evidence of NCC’s prior consent and approval,” the statement added.
The NCC and CAC said the policy is aimed at preventing anti-competitive practices, strengthening regulatory oversight and protecting the integrity of Nigeria’s communications industry.
According to the agencies, the measure will also enhance transparency, boost investor confidence and provide greater regulatory certainty for stakeholders.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices, while strengthening regulatory oversight of significant changes in ownership and control.
“It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry.”
The two regulatory bodies reaffirmed their commitment to fostering a transparent, stable and competitive business environment, stressing that they would continue to collaborate in promoting fair market practices and supporting the sustainable growth of Nigeria’s communications sector.
