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Joint directive requires Letter of No Objection from NCC before Corporate Affairs Commission can register ownership changes.
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced stricter compliance requirements for changes in the ownership structure of licensed telecommunications companies in Nigeria.Â
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In a joint statement, both agencies announced that any transfer of ownership or control involving 10 percent or more of a telecom company’s total share capital must now receive a Letter of No Objection from the NCC before the CAC can register the transaction.
The directive takes immediate effect and is backed by the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019.
10 Percent Threshold Covers Multiple Transfers
The requirement applies to individual share transfers as well as multiple transfers that, when combined, exceed the 10 percent threshold.
Under the new framework, the CAC will demand evidence of NCC approval before processing significant changes in the shareholding structure of licensed telecom operators.
Preserving Competition and Strengthening Oversight
According to the agencies, the measure is aimed at preserving fair competition in the communications sector by preventing direct and indirect anti-competitive practices and strengthening oversight of major ownership changes.
They added that the policy will enhance transparency, boost investor confidence, provide regulatory certainty, and support the long-term stability of the telecommunications industry.
Commitment to a Sustainable Business Environment
The NCC and CAC reaffirmed their commitment to fostering a transparent, competitive, and sustainable business environment while supporting the continued growth of Nigeria’s communications sector.
