The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced new rules requiring approval for changes in ownership structure of licensed telecommunications companies.
In a joint statement on Sunday, the agencies said any transfer of shares amounting to 10 percent or more of the total share capital of a telecom licensee must now receive prior approval from the NCC.
They explained that the directive is supported by 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.
“Effective immediately any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten percent (10%) or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten percent (10%) of the total share capital of the Licensee shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC,” the notice reads.
“By this measure, the CAC will ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies are duly supported by evidence of NCC’s prior consent and approval.”
The agencies said the policy is aimed at maintaining a fair and competitive telecom market by preventing anti-competitive practices and strengthening oversight of ownership changes.
“It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry,” they added.
Both organisations reaffirmed their commitment to building a transparent and stable regulatory environment in Nigeria.
They also pledged continued collaboration to ensure fair market practices and the orderly development of the communications sector.