NCC, CAC Set Mandatory Conditions for changes in ownership structures of telcos
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have listed conditions on ownership structures of Telecommunication firms in Nigeria.
In a joint statement by NCC’s Director of Public Affairs, Mrs. Nnenna Ukoha, and
Rasheed Mahe, Head, Public Affairs Corporate Affairs Commission (CAC), the institutions urged the public, investors, and other stakeholders to heed the “compliance requirements regarding changes in the ownership structure of licensed communications companies in Nigeria”.
“This requirement is pursuant to the provisions of Section 90 of the Nigerian Communications Act 2003 (NCA 2003), Regulation 28 (2) of the Competition Practices Regulations, 2007, and Regulation 42 of the Licensing Regulations, 2019, which collectively empower the NCC to oversee and review transactions affecting licensees and promote fair competition.
“Effective immediately any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission, amounting to 10 per cent (10%) or more of the total share capital, as well as any series of share transfers which in aggregate exceed 10 per cent (10%) of the total share capital of the Licensee shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC,” Mrs. Ukoha said. They added that by this measure, “the CAC will ensure that all requests for change in shareholding structure amounting to 10% or more, submitted for registration by telecommunications companies are duly supported by evidence of NCC’s prior consent and approval”.
The joint statement also said: “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.
“It will further promote transparency, investor confidence and regulatory certainty and safeguard the long-term sustainability and stability of the industry.
“The NCC and the CAC reaffirm their shared 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,” .
