The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have directed telecommunications companies to obtain regulatory approval before carrying out share transfers or ownership changes involving 10 per cent or more of their share capital.
The agencies issued the directive in a joint statement signed by Nnena Ukoha, director of public affairs, NCC, and Rasheed Mahe, head of public affairs, CAC, on Sunday.
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The agencies said any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of an NCC-licensed company must receive a ‘Letter of No Objection’ from the NCC before the CAC can register such changes.
The directive also applies to multiple share transfers that, when aggregated, exceed 10 per cent of a licensee’s total share capital.
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“Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten per cent (10%) or more of the total share capital, as well as any series of share transfers which, in aggregate, exceed ten per cent (10%) of the total share capital of the licensee, shall require a Letter of No Objection from NCC for the changes to be effected and registered with the CAC,” the agencies said.
The agencies said the requirement is pursuant to the provisions of Section 90 of the Nigerian Communications Act 2003 (NCA 2003), Regulation 28(2) of the Competition Practices Regulations, 2007.
It is also in line with Regulation 42 of the Licensing Regulations, 2019, which collectively empower the NCC to oversee and review transactions affecting licensees and promote fair competition.
With the measure, CAC will ensure that all requests for changes in shareholding structures amounting to 10 per cent or more, submitted for registration by telecommunications companies, are duly supported by evidence of NCC’s prior consent and approval.
The requirement is designed to preserve a fair and competitive market structure within the communications sector.
It will prevent direct or indirect anti-competitive practices while strengthening regulatory oversight of significant changes in ownership and control.
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According to the NCC and CAC, the measure will further promote transparency, investor confidence, and regulatory certainty, and safeguard the long-term sustainability and stability of the industry.
“The NCC and the CAC reaffirm their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria,” the statement stated.
Both agencies affirmed efforts to continue working closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector.
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