NCC, CAC Require Prior Approval for Telecom Share Transfers Above 10%

 NCC, CAC Require Prior Approval for Telecom Share Transfers Above 10%

LAGOS, Nigeria — The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new regulatory requirement mandating telecommunications companies to obtain prior approval before effecting significant changes in their ownership structure.

In a joint public notice issued on Monday, the two regulatory agencies announced that any proposed transfer of ownership or control involving 10 percent or more of the total share capital of a licensed telecommunications company must receive a Letter of No Objection from the NCC before such transactions can be registered by the CAC.

The directive, which takes immediate effect, also covers multiple share transfers that may individually fall below the threshold but collectively amount to more than 10 percent of the total shareholding of an NCC licensee.

According to the agencies, the measure is backed by 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. These provisions empower the NCC to review transactions involving licensed operators and ensure compliance with competition and regulatory standards within the telecommunications sector.

Under the new framework, telecommunications companies seeking to register shareholding changes of 10 percent or more with the CAC must provide evidence of the NCC’s prior consent and approval.

The NCC and CAC explained that the policy is designed to strengthen regulatory oversight of significant ownership changes, prevent direct or indirect anti-competitive practices, and preserve a fair and competitive market environment.

The agencies further stated that the requirement would promote transparency, enhance investor confidence, provide greater regulatory certainty, and contribute to the long-term stability and sustainability of Nigeria’s communications industry.

They reaffirmed their commitment to fostering a transparent, stable, and competitive business environment through continued collaboration aimed at encouraging fair market practices and supporting the orderly growth of the nation’s telecommunications sector.

The joint directive is expected to tighten scrutiny of major investment transactions within the communications industry while ensuring that ownership changes do not undermine competition or the broader objectives of sector regulation.