The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new compliance requirement mandating licensed telecommunications companies to obtain regulatory approval before implementing significant changes in their ownership structure.
In a joint statement signed by Nnena Ukoha and Rasheed Mahe, the agencies said the directive takes immediate effect and is in line with the provisions of 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.
Under the new requirement, any proposed transfer of ownership or control involving 10 per cent or more of the total share capital of an NCC-licensed company, including cumulative share transfers exceeding the threshold, must receive a Letter of No Objection from the NCC before the transaction can be registered by the CAC.
The CAC will now require evidence of the NCC’s prior approval before registering any changes in the shareholding structure of telecommunications companies involving 10 per cent or more of their shares.
According to the agencies, the measure is designed to preserve fair competition, strengthen regulatory oversight of major ownership changes, prevent anti-competitive practices, and enhance transparency within the communications sector.
The NCC and CAC added that the policy will boost investor confidence, provide regulatory certainty, and support the long-term sustainability and stability of Nigeria’s communications industry.
They reaffirmed their commitment to promoting a transparent, stable, and competitive business environment through continued collaboration.
(Ripples)