Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced a new compliance requirement mandating telecommunications companies to obtain regulatory approval before effecting significant changes in their ownership structure.
The directive, jointly issued by the two agencies, requires any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of a company licensed by the NCC to secure a Letter of No Objection from the commission before such transactions can be registered with the CAC.
The agencies said the requirement was in line with the provisions of 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.
According to the statement, the regulations empower the NCC to oversee and review transactions involving licensed communications companies and ensure fair competition within the sector.
“Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission amounting to 10 per cent or more of the total share capital, as well as any series of share transfers which in aggregate exceed 10 per cent 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 statement said.
The agencies explained that the CAC would henceforth ensure that all applications for changes in shareholding structures involving 10 per cent or more of a telecommunications company’s share capital are accompanied by evidence of prior approval from the NCC.
They noted that the measure was aimed at preserving a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices.
According to the statement, the new requirement will also strengthen regulatory oversight of significant changes in ownership and control of licensed telecommunications operators.
The agencies said the initiative would enhance transparency, boost investor confidence, provide regulatory certainty and safeguard the long-term sustainability and stability of the communications industry.
The NCC and CAC reaffirmed their commitment to promoting a transparent, stable and competitive business environment in Nigeria.
They pledged to continue working closely to ensure fair market practices, strengthen regulatory certainty and support the orderly and sustainable development of the nation’s communications sector.
