NCC, CAC mandate prior approval for 10% share transfer in licensed telecom firms

By Precious Mark

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced that any transfer of 10% or more of shares in a licensed telecommunications company must now receive prior approval from the NCC before the CAC can register it.

This directive was contained in a joint statement signed on Sunday by Nnena Ukoha, NCC Director of Public Affairs, and Rasheed Mahe, CAC Head of Public Affairs.

According to the statement, the directive is pursuant to Section 90 of the Nigerian Communications Act 2003 (NCA 2003), Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.

The agencies stated that these regulations empower the NCC to oversee and review transactions affecting licensees and to 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 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 the NCC,” the statement said.

The two commissions added that the CAC will ensure all requests for changes in the shareholding structures of 10% or more submitted by telecommunications companies are supported by evidence of the NCC’s prior consent before registration.

The NCC and CAC stated that the measure is designed to preserve a fair and competitive market structure, prevent direct or indirect anti-competitive practices, and strengthen regulatory oversight of significant changes in ownership and control.

They added that it will also promote transparency, investor confidence, and regulatory certainty, while safeguarding the long-term stability of the industry.

Both agencies restated their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria, noting that they will continue to work closely to ensure fair market practices and the sustainable development of the communications sector.