NCC, CAC move to screen major telecom share deals
The Nigerian Communications Commission and the Corporate Affairs Commission have mandated that telecom share transfers exceeding 10 percent require regulatory clearance. This move aims to increase oversight of ownership changes in the strategic telecommunications sector.
Why it matters
This regulatory shift increases the barrier to entry and M&A activity in Nigeria's growing digital infrastructure market.
The Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have introduced a new layer of regulatory oversight that could reshape how investments, acquisitions and ownership changes are carried out in Nigeria s telecommunications industry. Under a joint directive announced on Sunday, any transfer of shares amounting to 10 percent or more in a licensed telecommunications company must first obtain a Letter of No Objection from the NCC before the transaction can be registered by the CAC. The new requirement takes immediate effect and applies not only to single transactions but also to a series of share transfers that cumulatively exceed the 10 percent threshold. Read also: Nigeria’s AI future depends on stronger telecom networks, local internet traffic, experts say
The article provides a factual summary of a new government policy and its implications for the industry.
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