Telecoms ownership now under tighter watch as NCC, CAC link approvals to 10% share transfers

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 NCC Mrs Nnena Ukoha and Rasheed Mahe, Head, Public Affairs, Corporate Affairs Commission (CAC).

In a joint press statement issued on June 21, 2026, both agencies declared that any proposed transfer of ownership or control amounting to ten 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 applies where a series of smaller share transfers, taken together, cross the ten percent threshold.

The new requirement is anchored in 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 will henceforth only approve and register changes in the shareholding structure of telecommunications companies involving ten 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.

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.