The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced stricter rules governing ownership changes in licensed telecom firms. Henceforth, any transfer of shares equal to or exceeding 10% of a licensee’s total share capital must receive a formal “Letter of No Objection” from the NCC before the transfer can be registered.
Their joint statement, signed by NCC Director of Public Affairs Nnena Ukoha and CAC Head of Public Affairs Rasheed Mahe, says the measure aims to protect a competitive market by preventing direct or indirect anti-competitive actions and by improving regulatory oversight of significant shifts in ownership and control. The 10% threshold applies to single transactions as well as to cumulative transfers made in a series that together exceed 10% of the company’s share capital.
To enforce the policy, the CAC will refuse registrations of shareholding changes for telecommunications companies unless applicants provide proof of prior NCC approval. The move is supported by Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019.
The regulators say the requirement will enhance transparency, investor confidence, and regulatory predictability, helping to protect the long-term stability and growth of Nigeria’s communications sector. The NCC and CAC also pledged to collaborate closely to preserve a stable, competitive business environment that supports orderly sector development.
