The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced a new compliance requirement aimed at strengthening regulatory oversight, transparency, and fair competition within Nigeria’s communications sector.
In a joint directive, both agencies informed the public, investors, and stakeholders that any proposed transfer of ownership or control involving ten percent (10%) or more of the shares of a licensed telecommunications company must obtain prior approval from the NCC before such changes can be registered by the CAC.
The directive is anchored on the provisions of 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 supervise transactions affecting its licensees and safeguard a competitive telecommunications market.
Under the new requirement, any transfer of shares amounting to 10 percent or more of a licensee’s total share capital—or a series of transactions that cumulatively exceed the 10 percent threshold—must be accompanied by a Letter of No Objection issued by the NCC before the CAC can effect and register the change.
Consequently, the CAC will require telecommunications companies seeking to register significant changes in their shareholding structures to provide evidence of prior consent and approval from the NCC.
According to both regulatory bodies, the measure is designed to prevent direct and indirect anti-competitive practices, enhance regulatory oversight of major ownership changes, and preserve a fair and competitive market environment.
The initiative is also expected to promote greater transparency, strengthen investor confidence, provide regulatory certainty, and support the long-term sustainability and stability of Nigeria’s communications industry.
The NCC and CAC reaffirmed their commitment to fostering a transparent, stable, and competitive business ecosystem. Both agencies pledged to continue their collaboration in ensuring fair market practices, enhancing regulatory certainty, and supporting the orderly growth and development of Nigeria’s communications sector.
