NCC, CAC Mandate Prior Regulatory Approval For Changes In Ownership Of Telecom Companies
By Sunday Etuka
The Nigerian Communications Commission (NC) and the Corporate Affairs Commission (CAC) have notified the public, investors, and stakeholders in the communications sector of new compliance requirements governing changes in the ownership structure of licensed communications companies in Nigeria.
According to a joint statement on Sunday by both agencies, the requirement is based on the provisions of 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, which empower the NCC to review transactions affecting licensees and promote fair competition in the sector.
In statement signed by the NCC’s Director of Public Affairs, Nnena Ukoha, and CAC’s Head of Public Affairs Rasheed Mahe, the agencies said effective immediately, any proposed transfer of ownership or control of shares in an NCC-licensed company amounting to ten percent (10%) or more of its total share capital, including any series of share transfers that cumulatively exceed that threshold will require require a Letter of No Objection from NCC before such changes can be effected and registered with the CAC.
Under the new arrangement, 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 measure was 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. It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry.
They reaffirmed their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria.
Both agencies said they will continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s Communications Sector.
