NCC, CAC Require Prior Approval For Telecom Share Transfers Of 10% Or More

The Nigerian Communications Commission and the Corporate Affairs Commission have directed telecom companies to obtain regulatory approval before carrying out major share transfers or ownership changes.

Premium Times reported that the rule applies to transfers involving 10 per cent or more of the share capital of an NCC-licensed company. The agencies said such transactions must receive a Letter of No Objection from the NCC before the CAC can register the changes.

Daily Post reported that the directive also covers multiple share transfers that, when added together, exceed 10 per cent of a licensee’s total share capital.

The joint statement was signed by NCC Director of Public Affairs Nnena Ukoha and CAC Head of Public Affairs Rasheed Mahe. The agencies said the requirement takes effect immediately.

They cited Section 90 of the Nigerian Communications Act 2003, Regulation 28(2) of the Competition Practices Regulations 2007 and Regulation 42 of the Licensing Regulations 2019 as the legal basis for the directive.

The NCC and CAC said the measure is meant to improve oversight of ownership changes in the telecom sector and prevent anti-competitive practices.

Sources: Premium Times, Daily Post