Nigeria: Agencies Release Requirements For Prior Regulatory Approval On Changes In Shareholding/Ownership Structure Of Communications Companies
By Clifford Agugoesi, Editor-in-Chief
The requirements that must be satisfied before regulatory approvals are obtained regarding changes in shareholding/ownership structure of communications companies in Nigeria have been unveiled, Cyber Era NG learns.
In a joint statement accessed by our reporter and both e-signed by the spokespersons of the Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) Nnenna Ukoha and Rasheed Mahe, respectively, the advisory is issued in favour of the general public, investors, and all stakeholders in the communications sector.
The NCC/CAC reads in part: “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 ten percent (10%) or more of the total share capital, as well as any series of share transfers which in aggregate exceed ten percent (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.
“By this measure, the CAC will ensure that all requests for change in shareholding structure amounting to 10 per cent or more, submitted for registration by telecommunications companies are duly supported by evidence of NCC’s prior consent and approval.
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.”
Both agencies reaffirm their shared commitment to advancing a transparent, stable, and competitive business environment in Nigeria and to continue to work closely to promote regulatory certainty, ensure fair market practices, and support the orderly and sustainable development of Nigeria’s Communications Sector.
