NCC, CAC Tighten Rules on Telecom Ownership Changes, Mandate Approval for Major Share Transfers
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new regulatory requirement mandating telecommunications companies to obtain prior approval before making significant changes to their ownership structure.
In a joint press statement, the two regulatory agencies announced that, with immediate effect, any proposed transfer of ownership or control involving 10 per cent or more of the total share capital of a company licensed by the NCC must receive a Letter of No Objection from the Commission before the changes can be registered with the CAC.
The directive also applies to multiple share transfers that, when combined, exceed 10 per cent of a licensee's total share capital.
According to the statement, the requirement is backed by 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 oversee transactions involving licensed operators and promote fair competition within the telecommunications industry.
Under the new arrangement, the CAC will only process and register requests for changes in the shareholding structure of telecommunications companies involving 10 per cent or more where there is evidence of the NCC's prior approval.
The NCC and CAC said the measure is aimed at strengthening regulatory oversight of significant ownership changes, preventing direct or indirect anti-competitive practices, and preserving a fair and competitive market structure in Nigeria's communications sector.
They added that the policy will also enhance transparency, boost investor confidence, provide greater regulatory certainty, and safeguard the long-term stability and sustainability of the telecommunications industry.
The two agencies reaffirmed their commitment to working together to promote a transparent, stable, and competitive business environment, while ensuring orderly growth and sustainable development of Nigeria's communications sector.
Benita Ibrahim
