The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new rule requiring prior regulatory approval for significant changes in the ownership structure of telecommunications companies in Nigeria.
In a joint statement, the agencies said the directive is aimed at strengthening oversight, promoting fair competition, and ensuring transparency in the communications sector.
Under the new requirement, any transfer of shares or ownership amounting to 10 per cent or more of a licensed telecom company’s total share capital will now require a Letter of No Objection from the NCC before it can be registered by the CAC.
The rule also applies where multiple transactions cumulatively exceed the 10 per cent threshold.
The agencies said the CAC will not process or register any such changes without evidence of prior approval from the NCC.
They explained that the measure is backed by provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019.
According to them, the policy is designed to prevent anti-competitive practices, strengthen regulatory control, and ensure stability in the telecoms industry.
“This requirement is designed to preserve a fair and competitive market structure within the communications sector, while ensuring that no transaction undermines the integrity of the licensing framework.”
They added that the new framework will close regulatory gaps that could allow undisclosed or unapproved control changes in licensed operators.
“We are strengthening our oversight to ensure that all significant ownership changes are transparent, properly reviewed, and fully compliant with existing laws and regulations.”
The agencies said the reform is also aimed at protecting consumers and investors by ensuring stability and predictability in the sector.
“This measure is about protecting the telecom ecosystem consumers, investors, and operators alike by ensuring that ownership transitions do not create uncertainty or market instability.”
They further stressed that the rule is not intended to discourage investment, but to ensure responsible corporate governance.
“Nigeria remains open to investment, but such investments must be structured in a way that upholds transparency, accountability and compliance with regulatory standards.”
The NCC and CAC reiterated their commitment to collaboration in ensuring a well-regulated and competitive communications industry.
“Both agencies will continue to work together to promote regulatory certainty, fair competition, and sustainable growth in Nigeria’s communications sector.”
The directive takes immediate effect.