NCC and CAC require approval for telecom share transfers over 10%

By Juliet Umeh

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced that telecommunications firms must secure regulatory approval before transferring shares that represent 10 percent or more of their total share capital.

The directive, effective immediately, seeks to enhance regulatory oversight, safeguard competition, and increase transparency in Nigeria’s communications sector.

In a joint statement released on Sunday, the agencies stated that any proposed transfer of ownership or control in an NCC‑licensed company involving 10 percent or more of its share capital must first obtain a Letter of No Objection (LNO) from the NCC before the CAC can register the change.

The rule also covers multiple share transfers that, when combined, exceed the 10 percent threshold.

Signed by NCC Director of Public Affairs Nnenna Ukoha and CAC Head of Public Affairs Rasheed Mahe, the statement notes that the directive is grounded in the Nigerian Communications Act (2003), the Competition Practices Regulations (2007), and 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 10 percent or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten percent, shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC,” the statement read.

The CAC will only process and register such transactions when they are accompanied by evidence of prior NCC approval.

Both agencies explained that the policy is intended to prevent anti‑competitive practices, ensure market fairness, and strengthen regulatory stability in the telecom sector.

They added that the measure will also boost investor confidence, improve regulatory certainty, and support the long‑term sustainability of the industry.

Reaffirming their commitment, the agencies pledged continued collaboration to promote transparency, fair competition, and orderly development within Nigeria’s telecommunications sector.

The post NCC, CAC require approval for telecom share transfers above 10% appeared first on Vanguard News.