The Nigerian Communications Commission, (NCC) and the Corporate Affairs Commission (CAC) have introduced a new compliance requirement for telecommunications companies operating in Nigeria.
The two agencies of the Nigerian government explained that the directive mandates prior approval for significant ownership changes in the sector.
According to the statement in Abuja and signed by Mrs Nnenna Ukoha, NCC Director of Public Affairs, and Mr Rasheed Mahe, CAC Head of Public Affairs, the telecom companies must obtain a Letter of No Objection from NCC before transferring shares.
Mrs. Ukoha explained that the approval applies to transfers amounting to 10 per cent of total share capital and the requirement is based on the Nigerian Communications Act (NCA) 2003 and other relevant regulations.
According to her, the rule takes immediate effect for NCC-licensed companies proposing ownership or control changes.
The measure also covers multiple share transfers that collectively exceed the 10 per cent threshold.
Ukoha said that the CAC would ensure shareholding change requests have evidence of NCC approval before registration.
She noted that the policy would prevent direct or indirect anti-competitive practices in the sector.
“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” she said.
The NCC official added that the move would strengthen oversight of ownership and control changes.
She said that the policy would improve transparency, investor confidence and regulatory certainty in the industry.
According to her, the initiative will safeguard the long-term stability of Nigeria’s communications sector.
Ukoha reaffirmed the commitment of the NCC and CAC to a transparent business environment.
She said that both agencies would continue working together to promote fair market practices and support the orderly and sustainable growth of the communications industry in Nigeria.
GIK/APA