NCC and CAC Say Telecoms Need Approval for Share Transfers

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have told telecom companies to get approval before they transfer shares or change ownership if it involves 10 percent or more of their shares.

The agencies released this information in a joint statement signed by Nnena Ukoha, who is the director of public affairs at the NCC, and Rasheed Mahe, the head of public affairs at the CAC, on Sunday.

They explained that any planned transfer of shares or ownership that is 10 percent or more of the shares of an NCC-licensed company needs a ‘Letter of No Objection’ from the NCC. This letter must be obtained before the CAC can register any such changes.

This rule also applies to multiple transfers that, when added together, exceed 10 percent of a company’s total shares.

“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 for the changes to be effected and registered with the CAC,” the agencies stated.

The agencies explained that this requirement is based on Section 90 of the Nigerian Communications Act 2003 (NCA 2003) and Regulation 28(2) of the Competition Practices Regulations, 2007.

It also follows Regulation 42 of the Licensing Regulations, 2019, which gives the NCC the power to review transactions that affect licensees and promote fair play in the market.

With this new rule, the CAC will check that all requests for changes in shareholding of 10 percent or more submitted by telecom companies come with proof of the NCC’s prior consent and approval.

This requirement aims to keep the market fair and competitive in the communications sector.

It will help stop both direct and indirect unfair practices while also boosting regulatory oversight of major changes in ownership and control.

According to the NCC and CAC, this step will help improve transparency, boost investor confidence, and ensure regulatory certainty, all while protecting the long-term growth and stability of the industry.

“The NCC and the CAC reaffirm their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria,” the statement noted.

Both agencies promised to keep working closely together to support fair market practices and the steady development of Nigeria’s communications sector.