Nigeria’s telecommunications sector will now require prior regulatory approval for significant ownership changes, following a new compliance directive introduced by the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC).
The two government agencies said the new rule requires telecommunications companies operating in Nigeria to obtain a Letter of No Objection from the NCC before completing certain share transfers or changes in ownership and control.
The requirement applies to transactions involving the transfer of shares representing 10% or more of a company’s total share capital, according to a joint statement issued in Abuja.
The statement was signed by Mrs Nnenna Ukoha, NCC Director of Public Affairs, and Mr Rasheed Mahe, CAC Head of Public Affairs.
Ukoha said the measure takes immediate effect for all NCC-licensed telecommunications companies planning ownership or control changes.
The rule also covers multiple smaller transactions that, when combined, exceed the 10% ownership threshold.
Under the new arrangement, the CAC will require evidence of NCC approval before registering any shareholding changes involving telecom operators.
The agencies said the policy is aimed at strengthening oversight, improving transparency and preventing practices that could weaken competition in Nigeria’s communications industry.
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“The requirement is designed to preserve a fair and competitive market structure within the communications sector,” Ukoha said.
She added that the new framework would help regulators monitor changes in ownership structures more effectively while providing greater certainty for investors and industry participants.
Nigeria’s telecommunications sector has grown into one of the country’s most important economic industries, supporting digital services, financial technology, business operations and government connectivity programmes.
The NCC and CAC said closer coordination between regulators would help protect the long-term stability of the industry while encouraging sustainable investment.
The agencies said the approval requirement is based on provisions of the Nigerian Communications Act (NCA) 2003 and other relevant regulations governing the sector.
Regulators have increasingly focused on ownership structures in strategic industries to ensure market stability and prevent excessive concentration of control.
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The NCC said the policy would also support a more transparent business environment by ensuring that major ownership transitions are properly reviewed before completion.
The agency reaffirmed its commitment, alongside the CAC, to promoting fair market practices and supporting the orderly growth of Nigeria’s communications sector.
The new rule is expected to affect future mergers, acquisitions, major share transfers and other ownership adjustments involving telecom operators licensed to operate in Nigeria.
