NCC, CAC tighten rules on telecom ownership changes, mandate approval for 10% share transfers
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced new regulatory requirements governing changes in the ownership structure of licensed telecommunications companies in Nigeria.
Under the new directive, any proposed transfer of shares or change in control amounting to 10 percent or more of the total share capital of a telecom operator must now receive prior approval from the NCC before such changes can be registered by the CAC.
The agencies disclosed this in a joint statement issued on Sunday, explaining that the measure is aimed at strengthening regulatory oversight, enhancing transparency, and safeguarding competition within the country’s rapidly expanding telecommunications sector.
According to the statement, the requirement is backed by 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.
The NCC and CAC stated that, with immediate effect, any direct or indirect transfer of ownership or control of shares in a telecom licensee that amounts to 10 percent or more of its total shareholding will require a formal Letter of No Objection from the NCC.
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The directive also covers cumulative share transactions that, when combined, exceed the 10 percent threshold.
According to the agencies, such approval must be obtained before the Corporate Affairs Commission can process and register any changes in shareholding structure involving telecommunications operators.
The statement emphasised that the CAC will henceforth ensure strict compliance by requiring documented evidence of NCC’s approval before effecting any changes in ownership records of telecom companies.
The regulatory bodies explained that the new framework is designed to prevent anti-competitive practices, whether direct or indirect, that could distort market structure or undermine fair competition in the telecommunications industry.
They noted that the communications sector remains critical to Nigeria’s economic growth and therefore requires strong oversight to ensure stability, transparency, and investor confidence.
According to the statement, the policy will also enhance regulatory certainty for investors while protecting the long-term sustainability of the industry.
“It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry,” the agencies stated.
The NCC and CAC stressed that the new requirements are firmly grounded in existing legal frameworks governing telecommunications operations and corporate regulation in Nigeria.
They cited relevant provisions of the Nigerian Communications Act, the Competition Practices Regulations, and the Licensing Regulations as the legal basis for the updated compliance structure.
Both agencies reaffirmed their commitment to closer collaboration in order to ensure effective enforcement of the new rules and to maintain a transparent regulatory environment for businesses operating in the sector.
The regulators said the initiative reflects their shared vision of promoting a competitive, transparent, and well-regulated telecommunications industry capable of supporting Nigeria’s digital economy ambitions.