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The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced stricter requirements for changes in the ownership structure of telecommunications companies, mandating prior regulatory approval for major share transfers.
In a joint statement signed by NCC Director of Public Affairs, Nnena Ukoha, and CAC Head of Public Affairs, Rasheed Mahe, and made available to Daily Sun on Sunday, both agencies said any proposed transfer of shares amounting to 10 per cent or more of the total share capital of a company licensed by the NCC must first receive a Letter of No Objection from the telecom regulator before the transaction can be registered by the CAC.
The directive also applies to multiple share transfers which, when combined, exceed 10 per cent of a licensee’s total shareholding.
According to the NCC and CAC, the measure 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.
Under the new arrangement, the CAC will only process and register changes in shareholding structures involving 10 per cent or more ownership in telecommunications companies where evidence of prior approval from the NCC has been provided.
The two regulators said the move is aimed at strengthening oversight of significant ownership changes within the communications sector and preventing transactions that could undermine competition in the industry.
They noted that the policy would help preserve a fair and competitive market environment, improve transparency in corporate transactions, boost investor confidence and provide greater regulatory certainty for operators and investors.
“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,” the statement said.
According to the agencies, the framework will also help safeguard the long-term stability and sustainability of Nigeria’s telecommunications industry, one of the country’s most strategic economic sectors.
The NCC and CAC reaffirmed their commitment to maintaining a transparent and competitive business environment, pledging continued collaboration to promote fair market practices and support the orderly development of the communications sector.
