The new directive, announced in a joint statement issued on Sunday in Abuja, is aimed at strengthening regulatory oversight, promoting transparency, and preventing anti-competitive practices within Nigeria’s fast-growing communications sector.
The statement was jointly signed by the NCC’s Director of Public Affairs, Mrs. Nnenna Ukoha, and the CAC’s Head of Public Affairs, Mr. Rasheed Mahe.
Under the new arrangement, telecommunications companies licensed by the NCC must secure a Letter of No Objection from the communications regulator before undertaking share transfers that amount to 10 per cent or more of their total share capital.
According to the NCC, the requirement takes immediate effect and applies to all licensed telecom operators seeking changes in ownership or control. The rule also extends to multiple share transactions that may individually appear insignificant but collectively exceed the 10 per cent threshold.
Explaining the rationale behind the policy, Ukoha said the directive is anchored on the provisions of the Nigerian Communications Act (NCA) 2003 and other relevant regulatory instruments governing the sector.
She noted that the measure would enable regulators to monitor major ownership changes more effectively and ensure that such transactions do not undermine competition or market stability.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” she said.
CAC to Verify NCC Clearance Before Registration
As part of the collaborative framework, the Corporate Affairs Commission will now require evidence of NCC approval before processing or registering qualifying changes in shareholding structures involving telecom operators.
This means that any request for a significant transfer of ownership in an NCC-licensed company must be accompanied by a valid Letter of No Objection issued by the communications regulator.
Industry stakeholders say the move is expected to close regulatory gaps that could allow changes in control of strategic telecommunications assets without adequate scrutiny.
The policy is also intended to prevent direct and indirect anti-competitive practices that could arise from undisclosed acquisitions, mergers, or ownership restructurings capable of altering market dynamics.
Boosting Transparency and Investor Confidence
Beyond regulatory oversight, the NCC believes the initiative will enhance transparency and create greater certainty for investors operating in Nigeria’s telecommunications ecosystem.
Ukoha stated that stronger supervision of ownership changes would help improve corporate governance standards and reinforce confidence among existing and prospective investors.
She added that the policy is expected to contribute to the long-term stability and sustainability of the communications industry by ensuring that major ownership transactions align with established regulatory requirements.
According to her, the framework will also provide greater clarity for market participants while supporting a level playing field for operators across the sector.
Agencies Reaffirm Commitment to Fair Competition
The NCC and CAC stressed that the new requirement reflects their shared commitment to fostering a transparent and well-regulated business environment.
Ukoha reaffirmed the determination of both agencies to continue working together to strengthen compliance, promote fair market practices, and protect the integrity of Nigeria’s communications industry.
She said the collaboration would support the orderly growth of the sector while ensuring that ownership and control changes are conducted in a manner that safeguards competition, investor interests, and broader market stability.
The development marks another step in ongoing efforts by regulators to strengthen governance standards in one of Nigeria’s most strategic and rapidly evolving industries.