Abayomi Susan
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have issued a new regulatory guideline for investors and stakeholders in the communications sector, outlining compliance requirements for changes in the ownership structure of licensed telecommunications companies in Nigeria.
In a statement released on Sunday and jointly signed by Nnena Ukoha, Director of Public Affairs at the NCC, and Rasheed Mahe, Head of Public Affairs at the CAC, the agencies explained that the directive is based on Section 90 of the Nigerian Communications Act 2003 (NCA 2003), Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019. These provisions collectively empower the NCC to regulate and review transactions involving licensees in order to promote fair competition in the sector.
The statement clarified that, with immediate effect, any proposed transfer of ownership or control of shares in a NCC-licensed company amounting to 10% or more of its total share capital—or multiple transactions that cumulatively exceed that threshold—will require a Letter of No Objection from the NCC before such changes can be approved and registered by the CAC.
It further explained that the CAC will only process shareholding changes of 10% or more where evidence of prior approval from the NCC is provided by telecommunications companies.
According to both agencies, the policy is intended to maintain a fair and competitive market structure by preventing anti-competitive practices, while also strengthening regulatory oversight of significant ownership changes. The measure is also expected to enhance transparency, boost investor confidence, improve regulatory certainty, and ensure the long-term stability and sustainability of Nigeria’s communications industry.
The NCC and CAC added that they will continue to collaborate closely to ensure consistent regulation, promote fair market practices, and support the orderly development of the country’s telecommunications sector.
