NCC now requires approval for telecom share transfers above 10%
By Aboki Forex —
The Nigerian Communications Commission (NCC) has issued a new rule. Telecom operators must now get approval before transferring 10% or more of their shares.
The directive takes immediate effect. It applies to all licensed telecom companies in the country.
The NCC announced this in a joint statement with the Corporate Affairs Commission (CAC) on Sunday. The statement was signed by NCC's Director of Public Affairs, Nnena Ukoha, and CAC's Head of Public Affairs, Rasheed Mahe.
Under the new framework, any proposed transfer of ownership or control involving 10% or more of a licensee's share capital needs a Letter of No Objection from the NCC. The CAC will not register the transaction without this letter.
The rule also covers multiple transactions that add up to more than 10% of the total share capital.
The regulators said the policy is based on the Nigerian Communications Act 2003, the Competition Practices Regulations 2007, and the Licensing Regulations 2019. These laws give the NCC power to review transactions that affect licensed operators and market competition.
Going forward, the CAC will require telecom companies to show evidence of NCC approval before any major shareholding changes can be registered.