The Nigerian Communications Commission, NCC and the Corporate Affairs Commission,CAC have introduced stricter regulatory requirements for changes in the ownership structure of telecommunications companies operating in Nigeria.
In a joint statement, both agencies announced that any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of a communications company licensed by the NCC must first obtain a Letter of No Objection from the Commission before such changes can be registered by the CAC.
The directive, which takes immediate effect, is anchored on provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019, all of which empower the NCC to review transactions affecting licensed operators and ensure fair competition in the sector.
Under the new arrangement, the CAC will require telecommunications companies seeking to register shareholding changes involving 10 per cent or more of their equity to provide evidence of prior approval from the NCC.
According to the agencies, the measure is aimed at strengthening regulatory oversight of significant ownership changes, preventing anti-competitive practices, and preserving a fair and competitive telecommunications market.
The regulators noted that the policy would also enhance transparency, boost investor confidence, provide greater regulatory certainty, and safeguard the long-term stability of Nigeria’s communications industry.
The NCC and CAC reaffirmed their commitment to maintaining a transparent, stable, and competitive business environment, stressing that both agencies would continue to collaborate in promoting fair market practices and supporting the sustainable growth of the telecommunications sector.
