In a major regulatory move aimed at tightening oversight in the telecommunications sector, the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced strict new compliance requirements for changes in the ownership structure of licensed communications companies.
Effective immediately, any transfer of shares amounting to 10 per cent or more of a licensee’s total share capital will require an official “Letter of No Objection” from the NCC before it can be legally registered.
According to a joint statement, yesterday, signed by Director, Public Affairs, NCC, Nnena Ukoha, and Head, Public Affairs, CAC, Rasheed Mahe, the new directive is designed to preserve a fair and competitive market structure.
“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 statement read.
The restriction applies not only to single transactions but also to “any series of share transfers, which in aggregate exceed 10 per cent of the company’s total share capital.
To ensure seamless enforcement, the CAC will act as a strict gatekeeper. The corporate registry will reject any applications for shareholding changes from telecommunications firms unless they are accompanied by explicit evidence of the NCC’s prior consent and approval.
The legal framework backing this joint enforcement includes: Section 90 of the Nigerian Communications Act 2003 (NCA 2003), Regulation 28 (2) of the Competition Practices Regulations, 2007, and Regulation 42 of the Licensing Regulations, 2019.
The regulators emphasised that the initiative will promote transparency, investor confidence, and regulatory certainty, safeguarding the long-term sustainability and stability of Nigeria’s rapidly growing communications industry.
Both the NCC and CAC reaffirmed their commitment to working closely together to maintain a stable and competitive business environment that supports orderly development across the sector.