The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new compliance requirement for ownership of telecom companies.
The directive mandates prior approval for significant ownership changes in telcos operating in Nigeria.
The agencies, in a joint statement signed by NCC Director of Public Affairs, Mrs Nnenna Ukoha and CAC Head of Public Affairs, Mr Rasheed Mahe, explained that telcos must obtain a Letter of No Objection from the NCC before transferring shares.
It said the approval applies to transfers amounting to 10 per cent of total share capital.
The requirement is based on the Nigerian Communications Act (NCA) 2003 and other relevant regulations.
According to the two regulators, the rule takes immediate effect for NCC-licensed companies proposing ownership or control changes.
The measure also covers multiple share transfers that collectively exceed the 10 per cent threshold.
The statement explained that the approval applies to transfers amounting to 10 per cent of total share capital.
The requirement is based on the Nigerian Communications Act (NCA) 2003 and other relevant regulations.
According to her, the rule takes immediate effect for NCC-licensed companies proposing ownership or control changes.
The measure also covers multiple share transfers that collectively exceed the 10 per cent threshold.
It said the CAC would ensure that shareholding change requests have evidence of NCC approval before registration.
It noted that the policy would prevent direct or indirect anti-competitive practices in the sector.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” the statement said.
It added that the move would strengthen oversight of ownership and control changes.
It said the policy would improve transparency, investor confidence, and regulatory certainty in the industry.
According to the statement, the initiative would safeguard the long-term stability of Nigeria’s communications sector.
It reaffirmed the commitment of the NCC and CAC to a transparent business environment.
It said both agencies would continue working together to promote fair market practices.
The collaboration, she added, would support the orderly and sustainable growth of the communications industry.
