- Insist investors can’t trade shares secretly
- Demand prior approval for 10%+ stake transfers
BY COBHAM NSA – The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have launched a sweeping regulatory crackdown, requiring telecom operators to obtain official approval before transferring 10 percent or more of their shares to new investors.
This massive regulatory shakeup, which has introduced strict new compliance measures for the telecom sector, is designed to fundamentally reshape the industry’s ownership landscape and protect national digital infrastructure
With the two powerhouse agencies officially joining forces to drive reforms around how telecom operators run their businesses, company executives are now racing against time to meet the rigid new standards or face severe legal and financial penalties.
A statement jointly signed by Nnena Ukoha, Director, Public Affairs, Nigerian Communications Commission (NCC) and Rasheed Mahe, Head, Public Affairs, Corporate Affairs Commission (CAC) 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”.
Drawing the attention of investors, stakeholders and the general public to compliance requirements regarding changes in the ownership structure of licensed communications companies in Nigeria, the statement further said that “this requirement is pursuant to the 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 promote fair competition.”
Specifically, it said, “By this measure, the CAC will ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies are duly supported by evidence of NCC’s prior consent and approval.
“The requirement is 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.”
According to the statement, this new directive will structurally promote market transparency, fortify investor confidence, and eliminate ambiguity, adding that by setting a clear regulatory roadmap, the foundation needed to protect the long-term viability and operational resilience of the communications industry would be properly established
While reaffirming that both NCC and CAC are united in their commitment to building a transparent, stable, and competitive business landscape in Nigeria, the statement assured the two organisation will also maintain a highly collaborative approach to enforce fair market practices, eliminate regulatory uncertainty, and guide the sustainable, orderly growth of the nation’s communications sector.
