NCC, CAC introduce new rules for ownership structure in telecom companies

The Nigerian Communications Commission (NCC) and Corporate Affairs Commission (CAC) have introduced new compliance requirements requiring licensed telecommunications companies to obtain regulatory approval before implementing significant changes in their ownership structure.

In a joint statement signed by Nnena Ukoha and Rasheed Mahe, the agencies said that the directive would come into effect immediately and was in line with the provisions of Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competitive Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.

Under the new requirements, any proposed transfer of ownership or control involving 10 percent or more of the total share capital of an NCC-licensed company, including cumulative share transfers exceeding the threshold, must receive a Letter of No Objection from the NCC before the transaction can be registered by the CAC.

The CAC will now require proof of NCC approval first before registering any changes in the shareholding structure of telcos covering 10 percent or more of their shares.

According to the agencies, the move is designed to safeguard fair competition, strengthen regulatory oversight of large-scale ownership changes, prevent anti-competitive practices, and increase transparency in the communications sector.

The NCC and CAC added that the policy will increase investor confidence, provide regulatory certainty, and support the long-term sustainability and stability of the Nigerian communications industry.

They reaffirmed their commitment to fostering a transparent, stable and competitive business environment through continued collaboration.