The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced stringent new compliance requirements for changes in the ownership structure of licensed communications companies in a significant regulatory move intended to tighten oversight in the telecommunications sector. With immediate effect, a formal "Letter of No Objection" from the NCC is required before any transfer of shares totaling ten percent or more of a licensee's total share capital can be lawfully registered.
The new order is intended to maintain a fair and competitive market structure, according to a joint statement signed yesterday by Rasheed Mahe, Head of Public Affairs, CAC, and Nnena Ukoha, Director, Public Affairs, NCC. The restriction applies not only to single transactions but also to “any series of share transfers, which in aggregate exceed 10 percent of the company’s total share capital.
The CAC will serve as a stringent gatekeeper to guarantee smooth enforcement. The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced stringent new compliance requirements for changes to the ownership structures of licensed communications companies, a significant regulatory move intended to tighten oversight in the telecommunications sector. With immediate effect, a formal
"Letter of No Objection" from the NCC is required before any transfer of shares totaling ten percent or more of a licensee's total share capital can be lawfully registered. unless they include clear proof of the NCC's prior approval and authorization.
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, comprise the legislative foundation supporting this combined enforcement.
In order to protect the long-term viability and stability of Nigeria's quickly expanding communications sector, the regulators emphasized that the initiative will advance openness, investor trust, and regulatory certainty.
The NCC and CAC both reiterated their dedication to collaborating closely in order to sustain a competitive and stable business climate that promotes orderly development throughout the industry.
