NCC, CAC INTRODUCE NEW APPROVAL REQUIREMENT FOR OWNERSHIP CHANGES IN TELECOM FIRMS
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By: Muftau Fatimo
The Nigerian Communications Commission and the Corporate Affairs Commission have introduced a new compliance requirement governing changes in the ownership and shareholding structure of licensed telecommunications companies in Nigeria.
In a joint statement issued by the Director of Public Affairs at the NCC, Nnena Ukoha, and the Head of Public Affairs at the CAC, Rasheed Mahe, the agencies said the directive is backed by provisions of the Nigerian Communications Act 2003, Competition Practices Regulations 2007, and Licensing Regulations 2019.
Under the new rule, any proposed transfer of ownership or control involving 10 per cent or more of the total share capital of an NCC-licensed company, including cumulative transactions exceeding that threshold, must first obtain a Letter of No Objection from the NCC before the changes can be registered by the CAC.
The agencies stated that the CAC will henceforth require proof of prior approval and consent from the NCC for all applications involving significant changes in the shareholding structure of telecommunications firms.
According to the statement, the measure is designed to strengthen regulatory oversight, preserve fair competition in the communications sector, and prevent anti-competitive practices arising from major ownership changes.
The NCC and CAC added that the policy is expected to enhance transparency, improve investor confidence, provide greater regulatory certainty, and support the long-term sustainability of Nigeria’s communications industry.
Both agencies reaffirmed their commitment to promoting a transparent, stable and competitive business environment through continued collaboration and effective market regulation.
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