The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) now require regulatory approval for any telecom share transfer of 10 per cent or more, in a move aimed at tightening oversight of ownership changes in the sector. The directive takes immediate effect.
What the rule says
In a joint statement signed by the NCC’s Nnenna Ukoha and the CAC’s Rasheed Mahe on June 21, 2026, the agencies said any proposed transfer of ownership or control amounting to 10 per cent or more of a licensee’s total share capital must first obtain a Letter of No Objection from the NCC before the CAC can register it.
In practice, this means the CAC will reject applications for shareholding changes from telecom companies unless they are accompanied by evidence of prior NCC approval.
Closing a loophole
Importantly, the requirement also covers a series of smaller share transfers that, in aggregate, exceed the 10 per cent threshold. This is designed to prevent gradual but significant shifts in control from slipping through without sector-specific scrutiny, closing a potential gap in oversight.
The legal basis
The agencies said the measure is anchored in 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 review transactions affecting licensed operators and safeguard fair competition.
Building on earlier reforms
The directive follows other recent steps to strengthen corporate governance in the sector, including a framework introduced by the NCC in 2025 to improve transparency, internal controls and risk management among operators. Together, the measures signal a more hands-on approach to how telecom companies are owned and run.
Why it matters
The NCC and CAC said the rule is intended to prevent anti-competitive practices, improve transparency and strengthen investor confidence in one of Nigeria’s most strategic industries. With the country recording over 188 million active lines and more than 154 million internet connections, regulators say protecting market stability is a priority.
For investors and operators, the change adds a clear regulatory step to any significant deal in the sector — one that will need to be factored into future mergers, acquisitions and ownership restructurings.
The agencies said they would continue working together to align corporate registration with sector regulation and support the orderly, sustainable development of the industry.
For dealmakers, the practical effect is an added layer of due diligence: any transaction nearing the threshold will now need NCC sign-off built into its timeline.
