NCC, CAC Mandate Telcos to Seek Approval for Share Transfer Above 10%

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced new compliance requirements for changes in the ownership structure of licensed telecommunications companies.

In a joint statement on Sunday, the agencies said any proposed transfer of ownership or control of shares amounting to 10 percent or more of the total share capital of a telecom licensee must receive prior approval from the NCC.

According to the agencies, the requirement is backed by Section 90 of the Nigerian Communications Act (NCA) 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.

“Effective immediately any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten percent (10%) or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten percent (10%) of the total share capital of the Licensee shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC,” the notice reads.

“By this measure, the CAC will ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies are duly supported by evidence of NCC’s prior consent and approval.”

The agencies said 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.

“It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry,” they added.

Both agencies reaffirmed their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria.

The commissions said they would continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector.