By Gabriel Ameh
By Secret Reporters
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new regulatory requirement mandating telecommunications companies operating in Nigeria to obtain approval before effecting significant changes to their ownership structure.
The directive, announced in a joint statement issued in Abuja, requires telecom operators to secure a Letter of No Objection from the NCC before transferring shares amounting to 10 percent or more of their total share capital.
The statement, jointly signed by NCC’s Head of Public Affairs, Nnenna Ukoha, and CAC’s Head of Public Affairs, Rasheed Mahe, stated that the measure is rooted in the provisions of the Nigerian Communications Act (NCA) 2003 and other applicable regulations governing the telecommunications sector.
According to the two regulatory agencies, the new requirement takes immediate effect and applies to all NCC-licensed companies seeking ownership or control changes. The policy also covers multiple share transfers that may individually fall below the threshold but collectively exceed 10 percent of a company’s shareholding.
Under the arrangement, the CAC will no longer process or approve shareholding change requests involving telecommunications firms unless evidence of NCC approval is presented.
The agencies explained that the move is aimed at preventing direct or indirect anti-competitive practices that could distort the communications market.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” the statement said.
The regulators added that the policy would strengthen oversight of ownership and control changes, improve transparency, boost investor confidence and enhance regulatory certainty across Nigeria’s telecommunications industry.
They further noted that the measure is intended to safeguard the long-term stability and sustainability of the country’s communications sector, which remains one of the key drivers of economic growth.
The NCC and CAC reaffirmed their commitment to maintaining a transparent and business-friendly environment, assuring stakeholders that both agencies would continue to collaborate in promoting fair market practices and orderly development within the telecommunications industry.
