Telecommunications companies operating in Nigeria will now face stricter regulatory scrutiny before significant changes in their ownership structures can take effect, following a new directive jointly issued by the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC).
The development was announced in a statement signed by the NCC’s Director of Public Affairs, Mrs. Nnena Ukoha, and the CAC’s Head of Public Affairs, Rasheed Mahe.
Under the new framework, any proposed transfer of ownership or control involving 10 per cent or more of the total share capital of an NCC-licensed communications company must first obtain regulatory clearance from the NCC before it can be recognized and registered by the CAC.
According to the agencies, the requirement also applies to a series of smaller share transfers that cumulatively exceed the 10 per cent threshold.
The statement explained that the policy is backed by 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, all of which empower the NCC to scrutinize transactions affecting licensees and protect competition within the telecommunications sector.
“Any proposed transaction involving the transfer of shares amounting to ten per cent or more of the total share capital of a licensee, whether through a single transaction or a series of transactions, shall require prior approval from the Nigerian Communications Commission,” the statement said.
As part of the new arrangement, the CAC will only process and register such changes in shareholding when applications are accompanied by a Letter of No Objection issued by the NCC.
Industry observers say the move is aimed at preventing significant changes in ownership or control from taking place without adequate sector-specific oversight, thereby closing potential regulatory loopholes.
The two agencies noted that the measure is designed to preserve a fair and competitive telecommunications market by preventing direct or indirect anti-competitive practices and undisclosed shifts in corporate control.
“The initiative is intended to deepen regulatory oversight of ownership structures, promote transparency, strengthen investor confidence, and enhance regulatory certainty for both domestic and foreign investors,” the statement added.
Reaffirming their commitment to collaboration, the NCC and CAC pledged to continue aligning corporate registration processes with sector-specific regulatory requirements.
The agencies stated that the partnership would help ensure fair market practices, foster transparency, and support the orderly and sustainable growth of Nigeria’s communications industry.
“The NCC and CAC remain committed to fostering a transparent, stable and competitive business environment while supporting the long-term development of Nigeria’s communications sector,” the statement said.
