The Corporate Affairs Commission (CAC) has mandated the consent of the Nigerian Communications Commission (NCC) for telecommunications companies seeking to transfer ownership or control of shares amounting to 10% or more of their total share capital to prevent anti-competitive practices within Nigeria’s communications sector.
This was disclosed in a joint statement signed by the NCC’s Director of Public Affairs, Nnenna Ukoha, and CAC’s Head of Public Affairs, Rasheed Mahe, on Sunday.
The new rule requires telecom companies to obtain a letter of no objection from the NCC before such ownership changes can be registered with the CAC.
The agencies said the measure is also aimed at strengthening regulatory oversight and promoting transparency in the sector. The requirement applies to both single transactions involving 10% or more share transfers and multiple transactions that collectively exceed the threshold.
The NCC and CAC said the new requirement takes immediate effect and ensures that all requests involving significant changes in ownership structures of licensed telecommunications companies are supported by evidence of prior approval from the NCC.
The joint statement partly reads:
“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.”
“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 agencies noted that the requirement is based on provisions of the Nigerian Communications Act 2003, Competition Practices Regulations 2007 and Licensing Regulations 2019, which empower the NCC to review transactions affecting licensed operators.
The new ownership control requirement is expected to strengthen regulatory supervision over significant changes in ownership and control within the telecommunications industry.
The NCC and CAC said the measure would support a fair and competitive market structure while improving transparency and investor confidence.
The requirement is designed to prevent direct or indirect anti-competitive practices within the communications sector.
It will strengthen oversight of transactions that may significantly affect ownership and control of telecom operators.
The agencies said it would promote regulatory certainty and safeguard the long-term sustainability and stability of the industry.
The NCC and CAC reaffirmed their commitment to maintaining a transparent, stable and competitive business environment.
The two agencies said they will continue working together to ensure fair market practices and support the orderly development of Nigeria’s communications sector.
The latest requirement follows previous efforts by the NCC to strengthen corporate governance standards among telecommunications operators.
In August 2025, the NCC introduced a corporate governance framework aimed at improving transparency, internal controls and risk management across the telecommunications sector.
The NCC Executive Vice Chairman, Dr Aminu Maida, said the 2025 Guidelines on Corporate Governance were designed to improve long-term business sustainability and strengthen investor confidence.
The guidelines require telecom operators to implement balanced board structures involving executive, non-executive and independent directors.
Boards of telecom companies are expected to include members with expertise in ICT and cybersecurity.
The rules also require operators to separate the roles of Chairman and Chief Executive Officer to improve transparency.
The NCC and CAC said the new ownership transfer requirements are part of broader efforts to create a more accountable and sustainable telecommunications industry in Nigeria.
