NCC, CAC require approval for telecom share transfers above 10%

By Juliet Umeh

The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have directed telecommunications companies to obtain regulatory approval before executing any transfer of shares amounting to 10 per cent or more of their total share capital.

The directive, which takes immediate effect, is aimed at strengthening regulatory oversight, preserving competition, and improving transparency in Nigeria’s communications sector.

In a joint statement issued on Sunday, both agencies said any proposed transfer of ownership or control in an NCC-licensed company involving 10 per cent or more of its share capital must first receive a Letter of No Objection from the NCC before such changes can be registered by the CAC.

They added that the rule also applies to multiple share transfers which, when combined, exceed the 10 per cent threshold.

According to the statement jointly signed by NCC Director of Public Affairs, Nnenna Ukoha, and CAC Head of Public Affairs, Rasheed Mahe, the directive is backed by provisions of the Nigerian

Communications Act (2003), the Competition Practices Regulations (2007), and the Licensing Regulations (2019).

The statement read: “Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission amounting to 10 per cent or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten per cent, shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC.”

The CAC said it would only process and register such transactions when accompanied by evidence of prior NCC approval.

The agencies explained that the policy is designed to prevent anti-competitive practices, ensure market fairness, and strengthen regulatory stability in the telecom sector.

They added that the measure would also boost investor confidence, improve regulatory certainty, and support the long-term sustainability of the industry.

Reaffirming their commitment, both agencies pledged continued collaboration to promote transparency, fair competition, and orderly development within Nigeria’s telecommunications sector.

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