NCC, CAC Mandate Prior Approval for Major Shareholding Changes in Telecom Companies

By Mu’azu Hassan 

@ katsina times 

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

In a joint press statement, the two agencies said that, with immediate effect, any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of any NCC-licensed communications company must first receive a Letter of No Objection from the NCC before such changes can be registered by the CAC.

The directive is based on the provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019, which empower the NCC to supervise transactions affecting licensed communications companies and ensure fair competition within the sector.

According to the statement, the new requirement also applies to multiple share transfers that collectively exceed 10 per cent of a company's total share capital.

The CAC said it will henceforth ensure that all applications for changes in the shareholding structure of telecommunications companies involving 10 per cent or more are accompanied by evidence of the NCC's prior approval before they are processed and registered.

The commissions explained that the measure is aimed at preventing direct and indirect anti-competitive practices, strengthening regulatory oversight of significant ownership changes, and promoting transparency, investor confidence, and regulatory certainty in the communications industry.

They added that the policy is expected to safeguard the long-term sustainability and stability of Nigeria's telecommunications sector while fostering a fair and competitive business environment.

The NCC and CAC reaffirmed their commitment to working together to ensure effective regulation, encourage fair market practices, and support the orderly growth and sustainable development of Nigeria's communications sector.