By Chesa Chesa
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced stricter compliance requirements for changes in the ownership structure of licensed communications companies in Nigeria, in a move aimed at strengthening regulatory oversight and promoting fair competition in the sector.
In a joint press statement issued on Sunday, both regulatory agencies informed the public, investors, and stakeholders in the communications industry that prior approval must now be obtained before significant changes in the shareholding structure of telecom companies can be effected.
The statement was signed by Nnenna Ukoha, Director of Public Affairs at the NCC, and Rasheed Mahe, Head of Public Affairs at the CAC.
The new directive, which takes immediate effect, requires any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital in any company licensed by the NCC to obtain a Letter of No Objection from the Commission before such changes can be registered.
According to the statement, the requirement also applies to multiple share transfers which, when aggregated, exceed 10 per cent of the total share capital of the licensee.
The policy is anchored on 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, all of which empower the NCC to review transactions affecting licensees and ensure healthy market competition.
Under the new arrangement, the CAC will ensure that all requests for changes in shareholding structures involving 10 per cent or more, submitted by telecommunications companies for registration, are supported with documented evidence of the NCC’s prior consent and approval.
The NCC and CAC said the measure is intended to preserve a fair and competitive market structure in Nigeria’s communications sector by preventing direct or indirect anti-competitive practices and improving oversight of significant ownership and control changes.
They noted that the framework would also boost transparency, strengthen investor confidence, enhance regulatory certainty, and safeguard the long-term sustainability and stability of the telecommunications industry.
Reaffirming their commitment to a robust business environment, both agencies pledged continued collaboration to ensure fair market practices and support the orderly development of Nigeria’s communications sector.
