NCC, CAC mandate approval for 10% telecom equity transfers

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have issued a joint directive establishing new compliance requirements for ownership changes in licensed communications companies.

The directive was disclosed in a statement issued on Sunday in Abuja, by Nnena Ukoha, Director of Public Affairs at the NCC, and Rasheed Mahe, Head of Public Affairs at the CAC.

According to the statement, effective immediately, any proposed transfer of ownership or control of shares in an NCC licensee amounting to 10 percent or more of the total share capital requires a Letter of No Objection from the NCC before registration. This threshold applies to single transactions as well as a series of share transfers that aggregate to 10 percent or more.

Under this framework, the CAC will reject applications for shareholding changes from telecommunications companies unless they provide evidence of prior consent and approval from the NCC.

Read also: Police command apprehend suspect over alleged kidnapping activities in Kwara

The regulators stated that the requirement is pursuant to 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. These provisions empower the NCC to oversee transactions affecting licensees and protect market competition.

The agencies noted that the measure aims to preserve a competitive market structure within the communications sector by preventing anti-competitive practices, while strengthening oversight of changes in ownership and control. The directive is also intended to promote transparency, investor confidence, regulatory certainty, and industry stability.

The NCC and the CAC reaffirmed their commitment to maintaining a stable business environment and stated they will continue to work together to support the development of Nigeria’s communications sector.