Obtain prior approval for major shareholding changes – NCC, CAC tell telecom firms
Telecommunications Firms Must Seek Approval for Ownership Changes, NCC and CAC Say
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have issued a directive requiring telecommunications companies to obtain regulatory approval before implementing significant changes to their ownership structures.
In a joint statement released on Sunday, NCC Director of Public Affairs Nnenna Ukoha and CAC Head of Public Affairs Rasheed Mahe emphasized that any proposed transfer of ownership or control involving 10 percent or more of total share capital for companies licensed by the NCC must include a Letter of No Objection from the NCC. Such approval is necessary before the CAC can process any changes.
The requirement is effective immediately and applies not only to individual transfers but also to cumulative transfers that exceed the 10 percent threshold.
This directive is supported by Section 90 of the Nigerian Communications Act of 2003, along with Regulation 28(2) of the Competition Practices Regulations of 2007, and Regulation 42 of the Licensing Regulations of 2019. These provisions empower the NCC to oversee transactions involving licensees and promote fair competition within the sector.
As part of the new regulations, the CAC will mandate that all applications for registration of shareholding changes involving at least 10 percent must include evidence of prior consent from the NCC.
The NCC and CAC stated that the measure aims to preserve a fair and competitive market landscape in the communications sector by curbing anti-competitive practices, directly or indirectly.
Additionally, the policy is expected to enhance regulatory oversight of significant changes in ownership and control, thereby promoting transparency and boosting investor confidence.
“This requirement is designed to maintain a fair and competitive market structure while reinforcing regulatory oversight,” read the joint statement.
The agencies also noted that the initiative is intended to safeguard the long-term viability and stability of Nigeria’s communications industry.
Reaffirming their commitment to collaboration, the NCC and CAC pledged to work together to foster a transparent, stable, and competitive business environment.
“Both agencies will continue to promote regulatory certainty, ensure fair market practices, and support the orderly development of Nigeria’s communications sector,” the statement concluded.
