THE Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new compliance requirement mandating telecommunications companies to obtain regulatory approval before effecting significant changes in their ownership structures.

Under the new directive, any transfer of shares amounting to 10 per cent or more of the total share capital of a licensed telecommunications company must receive prior clearance from the NCC before it can be registered by the CAC.

The requirement was announced in a joint statement issued yesterday 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 measure takes immediate effect and applies not only to single transactions involving 10 per cent or more of a company’s shares, but also to multiple share transfers that cumulatively exceed the threshold.

The two regulatory agencies explained that the directive is backed by provisions of the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019, which empower the NCC to review transactions affecting licensed operators and safeguard competition within the sector.

Under the arrangement, telecommunications firms seeking to alter their ownership structures will be required to obtain a Letter of No Objection from the NCC before the changes can be processed and registered by the CAC.

The CAC, in turn, will ensure that applications involving changes in shareholding of 10 per cent or more are accompanied by evidence of the NCC’s prior approval before registration is completed.

The agencies said the new compliance framework is aimed at strengthening oversight of major ownership changes within the communications industry and preventing transactions that could undermine competition.

According to the statement, the policy is designed to preserve a fair and competitive market structure by curbing direct or indirect anti-competitive practices and ensuring greater transparency in the sector.

The regulators added that the requirement would enhance investor confidence, improve regulatory certainty and contribute to the long-term stability and sustainability of Nigeria’s telecommunications industry.

“The requirement is designed to preserve a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices, while strengthening regulatory oversight of significant changes in ownership and control,” the statement said.

The NCC and CAC reaffirmed their commitment to promoting a transparent and predictable business environment, pledging continued collaboration to ensure fair market practices and orderly growth of the communications sector.

Both agencies said the partnership would help deepen regulatory certainty while supporting sustainable development and investment in one of Nigeria’s most strategic industries.