NCC Tightens Grip on Telecom Ownership as CAC Blocks Share Transfers Without Regulatory Clearance

Telecommunications companies operating in Nigeria will now be required to obtain regulatory approval before carrying out major changes in their ownership structure, following a new directive jointly introduced by the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC).

The new policy mandates telecom operators licensed by the NCC to secure a Letter of No Objection from the communications regulator before transferring shares representing 10 per cent or more of their total share capital.

The directive was announced in a joint statement issued in Abuja and signed by the NCC’s Head of Public Affairs, Nnenna Ukoha, and the CAC’s Head of Public Affairs, Rasheed Mahe.

According to the statement, the requirement is backed by the provisions of the Nigerian Communications Act (NCA) 2003 and other sector-specific regulations designed to safeguard competition and transparency in the telecommunications industry.

The agencies explained that the measure takes immediate effect and applies to all NCC-licensed companies seeking changes in ownership or control. It also covers multiple share transactions that may individually fall below the 10 per cent threshold but collectively exceed it.

Under the new arrangement, the CAC will not process or approve requests for ownership changes involving telecommunications companies unless applicants present evidence of prior approval from the NCC.

The regulators said the move is aimed at strengthening oversight of ownership transitions and preventing direct or indirect anti-competitive practices that could undermine the integrity of the communications market.

“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” the statement noted.

The NCC and CAC added that the policy would enhance transparency in corporate transactions, improve investor confidence, and provide greater regulatory certainty for stakeholders in the industry.

They further stated that closer scrutiny of ownership and control changes would help safeguard the long-term stability and sustainability of Nigeria’s telecommunications sector, which remains a critical contributor to economic growth and digital transformation.

Reaffirming their commitment to a transparent and business-friendly operating environment, both agencies pledged continued collaboration to promote fair competition, regulatory compliance and orderly development within the nation’s telecom ecosystem.