from EMEKA OKONKWO in Abuja, Nigeria
Nigeria Bureau
ABUJA, (CAJ News) – THE establishment of a more rigorous, two-tier compliance process for corporate changes, announced by the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC), alters the regulatory landscape for telecommunications companies in the country.
Late on Sunday, the two organisations jointly informed the public, investors and stakeholders in the communications sector of compliance requirements regarding changes in the ownership structure of the firms.
Nnenna Ukoha, NCC Director of Public Affairs, and Rasheed Mahe, CAC Head of Public Affairs, made the announcement.
Effective immediately, any proposed transfer of ownership or control of shares in an NCC licensee amounting to 10 percent or more of the total share capital, and any series of share transfers which in aggregate exceed a similar percentage of the total share capital of the licensee, shall require a Letter of No Objection from the NCC.
This is in order for the changes to be effected and registered with the CAC, a government agency responsible for the regulation, incorporation and management of companies.
Effective immediately, the CAC will require evidence of the NCC’s prior consent and approval for any such ownership changes submitted for registration.
The CAC is to ensure all requests for changes in shareholding structures amounting to 10 percent or more, submitted for registration by telecommunications companies, are duly supported by evidence of the NCC’s prior consent and approval.
The organisations stated the initiative aims to preserve a competitive market structure, strengthen regulatory oversight, promote transparency and bolster investor confidence within the communications sector.
“It will further promote transparency, investor confidence and regulatory certainty, and safeguard the long-term sustainability and stability of the industry.”
The NCC and CAC assured stakeholders of their commitment to advancing a transparent, stable and competitive business environment in Nigeria.
“Both agencies will continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector.”
In summary, the changes culminate in heightened regulatory oversight, standardised compliance and increased transaction planning, among other benefits.
The directive places the NCC as a primary “gatekeeper” for ownership transitions. The agencies have bridged a regulatory gap that previously allowed such changes to occur without sector-specific scrutiny.
It creates a two-tier compliance requirement, with investors and operators now obliged to reconcile corporate registration processes with sector-specific regulatory approvals. This streamlines procedures, ensuring that the CAC does not process applications without proof of prior NCC consent.
By requiring greater scrutiny, the regulators aim to prevent anti-competitive practices, such as undisclosed control transfers or detrimental market consolidation.
It is anticipated the added layer of approval will improve investor confidence by providing clearer expectations and addressing uncertainty regarding post-transaction approvals.
Essentially, this represents a move towards more centralised and proactive governance in the communications sector, with the aim of growing assets and infrastructure investment.
– CAJ News