Telecoms Ownership Structure To Undergo Stricter Scrutiny By NCC, CAC

Telecommunications companies in Nigeria will now undergo stricter scrutiny before any major changes in their ownership structures can be finalized, following a new regulatory move jointly announced by the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC).

This is contained in a statement signed by the Director Public Affairs of the NCC, Mrs. Nnena Ukoha and the Head, Public Affairs of the CAC, Rasheed Mahe.

In the joint press statement issued on June 21, 2026, both agencies declared that any proposed transfer of ownership or control amounting to 10 percent or more of the total share capital of an NCC‑licensed communications company, must receive prior regulatory clearance from the NCC before it can be recognized and registered by the CAC.

The same rule, the two agencies explained will apply where a series of smaller share transfers, taken together, cross the 10 percent threshold.

The new requirement is anchored on Section 90 of the Nigerian Communications Act, 2003, alongside Regulation 28 (2) of the Competition Practices Regulations 2007 and Regulation 42 of the Licensing Regulations, 2019, which collectively empower the NCC to review transactions affecting licensees and safeguard fair competition in the sector.

Under the regime, the CAC, the statement said, will henceforth only approve and register changes in the shareholding structure of telecommunications companies involving 10 percent or more when the application is accompanied by a letter of no objection issued by the NCC.

This coordinated approach is expected to close loopholes that may previously have allowed significant shifts in control to occur without adequate sector‑specific oversight.

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According to the statement, the measure is designed to preserve a fair and competitive market structure in Nigeria’s communications industry, by preventing direct or indirect anti‑competitive practices and undisclosed changes in control.

It is also intended to deepen regulatory oversight of ownership, promote transparency, strengthen investor confidence, and enhance regulatory certainty for both local and international investors.

The NCC and CAC reaffirmed their joint commitment to fostering a transparent, stable and competitive business environment.

They pledged to continue working closely to align corporate registration processes with sector regulation, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s communications sector.