The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new regulatory requirement mandating telecommunications companies to obtain approval before carrying out significant changes in their ownership structure.

Under the directive, any transfer of shares or ownership interest involving 10 per cent or more of the total share capital of an NCC-licensed company must receive a Letter of No Objection from the communications regulator before the transaction can be registered by the CAC.

The new measure takes immediate effect and also applies to multiple share transactions that collectively exceed 10 per cent of a company’s total shareholding, even if the transfers occur in stages.

The development was announced in a joint statement issued by the Director of Public Affairs at the NCC, Nnena Ukoha, and the Head of Public Affairs at the CAC, Rasheed Mahe.

According to the statement, the policy is anchored on provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007 and the Licensing Regulations 2019, which empower the NCC to supervise transactions involving licensed operators and ensure fair competition within the communications sector.

Under the arrangement, the CAC will require evidence of the NCC’s approval before processing and registering any application involving ownership changes that meet or exceed the stipulated threshold.

The two regulatory agencies said the measure was designed to strengthen oversight of significant ownership transactions and prevent practices that could undermine competition in the telecommunications industry.

They noted that monitoring substantial changes in shareholding would help preserve a healthy market structure by reducing the risk of direct or indirect anti-competitive conduct among industry operators.

The agencies further stated that the requirement would improve transparency in the sector, enhance investor confidence, provide greater regulatory clarity and support the long-term stability of the communications industry.

They added that closer collaboration between both institutions would help ensure compliance with industry regulations while fostering sustainable growth and orderly development across Nigeria’s telecommunications landscape.

The NCC and CAC reaffirmed their commitment to maintaining a transparent and competitive business environment, stressing that the new compliance framework forms part of broader efforts to strengthen corporate governance and regulatory accountability within the communications sector.