Nigeria's communications sector faces tighter regulatory oversight after regulators yesterday announced new compliance requirements governing changes in the ownership structure of licensed communications companies.
Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission (NCC) amounting to 10% or more of the company's total share capital, as well as any series of share transfers that collectively exceed 10%, will require a Letter of No Objection from the regulator before the changes can be effected and registered with the Corporate Affairs Commission (CAC).
Announcing the development, the NCC and the CAC said the requirement is pursuant to 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, which collectively empower the NCC to oversee and review transactions affecting licensees and promote fair competition.
The new requirement reflects growing regulatory attention on corporate transactions in Nigeria's telecoms sector, one of the country's largest sources of private-sector investment.
With operators investing heavily in broadband infrastructure, data centres, fibre networks and digital services, regulators are seeking greater visibility over ownership changes that could influence competition, market dynamics and investor confidence.
Under the arrangement, the CAC will ensure that requests to register changes in shareholding structures amounting to 10% or more are supported by evidence of prior NCC approval.
The NCC and CAC said the measure is intended to preserve a fair and competitive market structure by preventing direct and indirect anti-competitive practices while strengthening oversight of significant ownership and control changes.
In a joint statement, the agencies said the requirement will promote transparency, investor confidence and regulatory certainty, while supporting the long-term stability of the communications sector.
The NCC and the CAC reaffirmed their commitment to advancing a transparent, stable and com-petitive business environment in Nigeria.
Both agencies said they would continue working closely to promote regulatory certainty, ensure fair market practices and support the orderly and sustainable development of Nigeria's communi-cations sector.
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