The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced new regulatory compliance measures governing changes in the ownership structure of licensed telecommunications companies in Nigeria, aimed at strengthening oversight and preserving fair competition within the communications sector.
According to a joint statement issued on Sunday and signed by the NCC’s Director of Public Affairs, Nnena Ukoha, and the CAC’s Head of Public Affairs, Rasheed Mahe, the new directive is anchored on the provisions of Section 90 of the Nigerian Communications Act (NCA) 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.
The agencies explained that the legal provisions empower the NCC to scrutinise transactions involving licensed operators and ensure that market activities do not undermine competition in the telecommunications industry.
Under the new framework, which takes immediate effect, any proposed transfer of ownership or control of shares in an NCC-licensed company amounting to 10 per cent or more of its total share capital must obtain a Letter of No Objection from the NCC before such transactions can be completed and registered with the CAC. The requirement also applies to multiple share transfers that may individually fall below the threshold but cumulatively exceed 10 per cent.
The statement further disclosed that the CAC will now ensure that all applications seeking registration of changes in the shareholding structure of telecommunications companies involving 10 per cent or more ownership are accompanied by evidence of prior approval and consent from the NCC.
According to the two agencies, the measure is intended to safeguard the integrity of the communications industry by preventing direct or indirect anti-competitive practices and ensuring effective regulatory supervision of significant ownership and control changes.
They noted that the initiative would enhance transparency, strengthen investor confidence, provide greater regulatory certainty, and support the long-term stability and sustainability of Nigeria’s telecommunications sector.
The NCC and CAC reaffirmed their commitment to fostering a transparent, stable and competitive business environment, stressing that both institutions will continue to collaborate closely in promoting fair market practices, regulatory certainty and the orderly development of the nation’s communications industry.
