NCC, CAC impose new rules on major telecom ownership transfers

Nigeria’s telecommunications regulator and the country’s company registration authority have jointly introduced a rule requiring telecom firms to obtain prior regulatory approval before executing significant ownership changes, in a move that tightens oversight of the sector’s corporate structure.

The Nigerian Communications Commission and the Corporate Affairs Commission announced that any telecommunications licensee seeking to transfer ownership or control amounting to 10% or more of its total share capital must first secure a Letter of No Objection from the NCC. The directive takes immediate effect.

The rule extends beyond single transactions. Multiple smaller share transfers that collectively exceed the 10% threshold will also trigger the approval requirement, closing a potential loophole through which significant ownership changes could be structured across staged transactions to avoid regulatory scrutiny.

To enforce compliance, the CAC will decline to register any qualifying ownership change unless the applicant presents evidence of NCC approval. The joint directive draws its legal basis from the Nigerian Communications Act of 2003, the Competition Practices Regulations of 2007, and the Licensing Regulations of 2019.

Both agencies said the measure is designed to prevent direct and indirect anti-competitive practices within the industry, adding that it will promote transparency, reinforce investor confidence, and provide greater regulatory certainty for operators and stakeholders in the sector.

The NCC and CAC pledged continued inter-agency collaboration to sustain a transparent and competitive business environment, framing the initiative as a long-term commitment to the stability and sustainability of Nigeria’s communications sector.