The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have directed telecommunications companies to obtain regulatory approval before making significant changes in their ownership structures.
In a statement jointly signed by NCC Director of Public Affairs, Nnenna Ukoha, and CAC Head of Public Affairs, Rasheed Mahe, on Sunday, both agencies warned that 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 be accompanied with a Letter of No Objection from the NCC before CAC can effect such changes.
According to the statement, the requirement takes immediate effect and also applies to a series of share transfers that, when aggregated, exceed 10 per cent of the total share capital of a licensee.
The agencies said the directive is backed by 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, which empower the NCC to oversee transactions affecting licensees and promote fair competition in the sector.
Under the new arrangement, the CAC will ensure that all applications seeking registration of changes in shareholding structures involving 10 per cent or more of a telecommunications company’s shares are accompanied by evidence of the NCC’s prior consent and approval.
The NCC and CAC said the measure is aimed at preserving a fair and competitive market structure in the communications sector by preventing direct or indirect anti-competitive practices.
They added that the policy would strengthen regulatory oversight of significant ownership and control changes, while promoting transparency, investor confidence, and regulatory certainty.
“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 read.
The agencies further noted that the initiative would help safeguard the long-term sustainability and stability of Nigeria’s communications industry.
Reaffirming their commitment to collaboration, the NCC and CAC pledged to continue working together to promote a transparent, stable, and competitive business environment.
“Both agencies will continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector,” the statement added.
