NCC, CAC Introduce New Approval Requirement for Ownership Changes in Telecom Firms
The Nigerian Communications Commission and the Corporate Affairs Commission have announced a new compliance requirement governing changes in the ownership structure of licensed telecommunications companies in Nigeria.
The development was disclosed in a joint statement signed by the NCC’s Director of Public Affairs, Nnena Ukoha, and the CAC’s Head of Public Affairs, Rasheed Mahe.
According to the statement, the new requirement is based on the provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019, which empower the NCC to regulate transactions involving licensed operators and ensure fair competition within the communications sector.
Under the directive, 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 NCC before the transaction can be registered by the CAC.
The requirement also applies to multiple share transfers that, when combined, exceed 10 per cent of a company’s total shareholding.
The agencies explained that the CAC will henceforth ensure that all applications involving significant changes in the shareholding structure of telecommunications companies are accompanied by evidence of prior approval from the NCC before registration can be completed.
According to the statement, the measure is designed to strengthen regulatory oversight of major ownership changes, prevent direct or indirect anti-competitive practices, and preserve a fair and competitive market environment in the telecommunications industry.
The NCC and CAC noted that the policy will enhance transparency, improve investor confidence, provide greater regulatory certainty, and support the long-term stability and sustainability of Nigeria’s communications sector.
The agencies urged all affected companies, investors and stakeholders to comply with the new requirement, which takes immediate effect.
NCC, CAC Introduce New Approval Requirement for Ownership Changes in Telecom Firms