NCC, CAC Enforce Approval for 10 Per Cent Telecom Share Transfers

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new regulatory requirement compelling telecommunications operators to secure approval before transferring significant portions of their shareholding.

Under the directive, any transfer of shares representing 10 per cent or more of the total share capital of a licensed telecommunications company must obtain prior clearance from the NCC before the transaction can be registered by the CAC.

The new measure, which takes immediate effect, was announced in a joint statement issued on Sunday by the Director of Public Affairs at the NCC, Nnena Ukoha, and the Head of Public Affairs at the CAC, Rasheed Mahe.

According to the two agencies, the requirement also covers multiple share transactions that, when combined, exceed the 10 per cent threshold.

They explained that the policy is anchored on provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007 and the Licensing Regulations 2019, which empower the NCC to scrutinise transactions involving licensed operators and ensure fair competition within the industry.

The statement said telecommunications firms seeking to alter their ownership structure must first obtain a Letter of No Objection from the NCC before such changes can be effected and registered by the CAC.

Consequently, the CAC will require evidence of the NCC’s approval before processing any application involving shareholding changes of 10 per cent or more in licensed telecom companies.

The commissions said the move is aimed at strengthening oversight of major ownership changes in the communications sector and preventing transactions that could distort competition.

According to them, the framework will help preserve a level playing field in the industry by discouraging direct or indirect anti-competitive practices while enhancing transparency in ownership and control arrangements.

“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 said.

The agencies further noted that the policy would boost investor confidence, improve regulatory certainty and support the long-term stability of Nigeria’s telecommunications industry.

They reaffirmed their commitment to fostering a transparent and predictable business environment, stressing that both regulators would continue to collaborate to promote fair market practices and sustainable growth across the communications sector.

The NCC and CAC added that closer regulatory cooperation would help strengthen governance within the industry and ensure orderly development in one of the country’s most strategic economic sectors.