The Nigerian Communications Commission (NCC) has directed telecommunications companies to obtain its approval before any transfer of shares amounting to 10 per cent or more of their ownership structure.
The agency gave the directive in a joint statement issued on Sunday by the commission and the Corporate Affairs Commission (CAC).
It said the new requirement takes immediate effect and applies to all licensed communications companies in Nigeria.
Under the directive, any proposed transfer of ownership or control of shares representing at least 10 per cent of a telecom company’s total share capital must receive a Letter of No Objection from the NCC before the transaction can be registered by the CAC.
The rule also applies to multiple share transactions that collectively exceed 10 per cent of a company’s total share capital.
The two regulators said the measure is backed by provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007 and the Licensing Regulations 2019, which empower the NCC to oversee transactions affecting licensed operators and promote fair competition.
“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 the NCC for the changes to be effected and registered with the CAC,” it read.
READ ALSO:
- NCC Mandates Telcos to Compensate Subscribers for Poor Network Service with Airtime Credits
- How NCC 50% Tariff Hike Lifts MTN Revenue to ₦5.20 Trillion in 2025
- CBN to Banks: Keep Payment Data in Nigeria
- Stablecoins Thrive Where Traditional Finance Falls Short – WeFi CEO
According to the statement, the CAC will ensure that all requests for changes in the shareholding structure of telecommunications companies involving 10 per cent or more are supported by evidence of the NCC’s prior approval before registration.
The regulators stated that the requirement is aimed at strengthening oversight of major ownership changes in the telecom sector and preventing anti-competitive practices.
“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,” they said.
The agencies added that the policy would promote transparency, investor confidence and regulatory certainty, while supporting the long-term stability and sustainability of Nigeria’s communications industry.
The NCC and CAC said they would continue to work together to ensure fair market practices and foster a transparent and competitive business environment in the sector.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X