Telecommunications companies in Nigeria will now need the Nigerian Communications Commission (NCC)’s approval before effecting major changes to their ownership structure under a new regulatory framework introduced jointly by the NCC and the Corporate Affairs Commission (CAC).
The two agencies announced on Sunday that any transfer of ownership or control involving 10 per cent or more of the shares of an NCC-licensed company must receive a Letter of No Objection from the Commission before the Corporate Affairs Commission can register the transaction.
The requirement, which takes immediate effect, also covers multiple share transfers that, when combined, exceed the 10 per cent threshold.
According to the NCC and CAC, the directive is anchored on Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019. The provisions empower the NCC to review transactions involving licensed operators and ensure they do not undermine competition in the communications sector.
Under the new arrangement, the CAC will only register qualifying changes in the shareholding structure of telecommunications companies after confirming that the proposed transaction has secured the NCC’s prior approval.
The agencies added that the new framework aligns the approval process between the NCC and the CAC, improving transparency, boosting investor confidence and providing greater regulatory certainty for investors and companies undertaking mergers, acquisitions and other significant equity transactions.
The NCC and CAC reaffirmed their commitment to maintaining a transparent, stable and competitive business environment, saying they would continue to work together to promote fair market practices and support the orderly growth of Nigeria’s communications sector.
