By Bassey Udo
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have issued regulatory guidelines for changes in the shareholding and ownership structure of licensed communications companies operating in the country.
In a joint statement issued in Abuja at the weekend, the two regulatory authorities informed the general public, investors, and all stakeholders in the communications sector about the requirements they would mandatorily comply with.
The requirements, the statement said, are pursuant to the relevant provisions of 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, which collectively empower the NCC to oversee and review transactions affecting licensees and promotion of fair competition.
In line with these laws, the statement jointly signed by the Director, Public Affairs, NCC,Nnena Ukoha, and Head, Public Affairs, CAC, Rasheed Mahe, said: “Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten percent (10%) or more of the total share capital, as well as any series of share transfers, which in aggregate, exceed ten percent (10%) of the total share capital of the Licensee, shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC.”
Consequently, the regulatory requirement, the statement spelled out, is that henceforth the CAC would ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies operating in the country are duly supported by evidence of NCC’s prior consent and approval.
The statement explained that this requirement was designed to preserve a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices, while strengthening regulatory oversight of significant changes in ownership and control.
Besides, the statement said the requirement would further help in promoting transparency, build investor confidence and strengthen regulatory certainty and safeguard the long-term sustainability and stability of the industry.
While reaffirming their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria, the NCC and the CAC assured that they would continue to work closely together to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s Communications Sector.
