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NCC, CAC require approval for telecom share transfers
🇳🇬 Nigeria /Sports

NCC, CAC require approval for telecom share transfers

From Premium Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Nigeria's telecommunications regulators, NCC and CAC, now require prior approval for significant share transfers in telecom companies.
  • Transfers involving 10% or more of a company's share capital need a 'Letter of No Objection' from the NCC before the CAC registers them.
  • This directive aims to ensure fair competition, transparency, and stability within Nigeria's communications sector.

Nigeria's telecommunications sector is subject to new regulations governing ownership changes. The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have jointly mandated that telecom companies must obtain regulatory approval before executing share transfers or ownership changes that amount to 10% or more of their total share capital.

This directive, effective immediately, means any proposed transfer of ownership or control of shares exceeding this threshold, or a series of transfers cumulatively surpassing 10%, requires a 'Letter of No Objection' from the NCC. Only after receiving this letter can the CAC proceed with registering the changes.

Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to ten per cent (10%) or more of the total share capital, as well as any series of share transfers which, in aggregate, exceed ten per cent (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.

— NCC and CACThe joint directive on share transfers in telecommunications companies.

The agencies cited provisions from the Nigerian Communications Act 2003 and related regulations, which empower the NCC to oversee transactions affecting licensees and promote fair competition. The CAC will now verify that all requests for significant shareholding changes are supported by evidence of the NCC's prior consent.

This measure is intended to preserve a competitive market structure, prevent anti-competitive practices, and strengthen regulatory oversight. Both the NCC and CAC have affirmed their commitment to fostering a transparent, stable, and competitive business environment in Nigeria, pledging to continue working together to ensure regulatory certainty and support the industry's sustainable development.

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

— NCC and CACA statement on their collaborative efforts to regulate the communications sector.
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Originally published by Premium Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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