Telecom firms must seek prior approval for major shareholding changes, says NCC and CAC.

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have instructed telecom operators to seek regulatory approval before making major changes to their ownership structures.

In a joint statement signed on Sunday by NCC Director of Public Affairs Nnenna Ukoha and CAC Head of Public Affairs Rasheed Mahe, the agencies warned that any transfer of ownership or control of shares in an NCC‑licensed company that totals 10 percent or more of its share capital must be accompanied by a Letter of No Objection from the NCC before the CAC can register the change.

The requirement is effective immediately and also applies to a series of share transfers that, when combined, exceed 10 percent of a licensee’s total share capital.

The directive is supported 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. These provisions give the NCC authority to oversee transactions that affect licensees and to promote fair competition in the sector.

Under the new arrangement, the CAC will ensure that all applications for registration of shareholding changes involving 10 percent or more of a telecommunications company’s shares include evidence of the NCC’s prior consent and approval.

The NCC and CAC said the measure aims to maintain a fair and competitive market structure in the communications sector by preventing direct or indirect anti‑competitive practices.

They added that the policy will strengthen regulatory oversight of significant ownership and control changes, while promoting transparency, investor confidence, and regulatory certainty.

“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,” the statement read.

The agencies further noted that the initiative would help safeguard the long‑term sustainability and stability of Nigeria’s communications industry.

Reaffirming their commitment to collaboration, the NCC and CAC pledged to continue working together to promote a transparent, stable, and competitive business environment.

“Both agencies will continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector,” the statement added.