NCC, CAC ANNOUNCE NEW REQUIREMENT FOR CHANGES IN SHAREHOLDING/OWNERSHIP STRUCTURE OF LICENSED COMMUNICATIONS COMPANIES
The Nigerian Communications Commission, NCC, and the Corporate Affairs Commission, CAC, have announced a new compliance requirement for changes in the ownership structure of licensed communications companies in Nigeria.
According to a statement by Nnena Ukoha, Director of Public Affairs, Nigerian Communications Commission, NCC, and Rasheed Mahe, Head of Public Affairs, Corporate Affairs Commission, CAC, the requirement is in line with the provisions of Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competition Practices Regulations 2007, and Regulation 42 of the Licensing Regulations 2019, which empower the NCC to oversee and review transactions affecting licensees and promote fair competition.
The statement explains that, with immediate effect, any proposed transfer of ownership or control of shares in an NCC licensee amounting to ten percent or more of the total share capital, as well as any series of share transfers that cumulatively exceed ten percent of the company’s total share capital, must obtain a Letter of No Objection from the NCC before such changes can be effected and registered with the CAC.
Under the new measure, the CAC will ensure that all applications for changes in shareholding structures involving ten percent or more of the shares of telecommunications companies are supported with evidence of the NCC’s prior approval and consent before registration.
The two agencies say the requirement is aimed at preserving a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices and strengthening regulatory oversight of significant changes in ownership and control.
They add that the policy will promote transparency, boost investor confidence, provide regulatory certainty, and safeguard the long-term sustainability and stability of Nigeria’s communications industry.
The NCC and CAC reaffirmed their commitment to advancing a transparent, stable and competitive business environment, stressing that both agencies will continue to work together to ensure fair market practices and support the orderly and sustainable development of Nigeria’s communications sector.
