The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a stricter regulatory framework requiring telecommunications companies to obtain prior approval before executing significant changes in ownership structure, in a move aimed at strengthening oversight of Nigeria’s fast-growing telecoms sector.
Under the new directive, any transfer of shares amounting to 10 per cent or more of the total share capital of a licensed telecom operator must now receive clearance from the NCC before such transactions can be registered by the CAC.
The policy, which takes immediate effect, also covers multiple transactions that cumulatively amount to 10 per cent or more ownership change, closing potential loopholes that could allow gradual but significant shifts in control without regulatory scrutiny.
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 measure was anchored on provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019.
The framework empowers the NCC to review transactions that could alter control or influence within licensed telecommunications operators, particularly where such changes may affect competition, market stability, or consumer welfare.
Under the arrangement, affected companies must first obtain a Letter of No Objection from the NCC before proceeding with filings at the CAC. The CAC, in turn, is mandated to ensure that any application involving qualifying share transfers is accompanied by evidence of regulatory approval from the telecoms regulator before registration is completed.
The regulators said the move is designed to prevent anti-competitive practices, enhance transparency in ownership structures, and ensure that no transaction capable of distorting market balance proceeds without due oversight.
According to the statement, the new requirement will also strengthen investor confidence by providing clearer regulatory certainty in one of Nigeria’s most strategic and capital-intensive sectors.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices, while strengthening regulatory oversight of significant changes in ownership and control,” the agencies stated.
The NCC and CAC reaffirmed their commitment to closer inter-agency collaboration, noting that the initiative would promote orderly growth, improve compliance standards, and support long-term sustainability in the telecommunications industry.
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