Let’s me breakdown what CAC meant by this.
First, this directive is NOT talking about new company registration.
It is talking about existing telecommunications companies that already have an NCC license.
The key phrase is:
“Ownership Changes” and “Transfer of Shares.”
What NCC and CAC are saying is this:
If a telecom company that is licensed by NCC wants to transfer 10% or more of its shares to another person, company or investor, they must first obtain a Letter of No Objection from NCC before CAC can approve and register that share transfer.
Now, where does CAC come in?
CAC is the agency that records and approves changes in shareholding.
Before now, a company could process its share transfer documents and file them with CAC.
But going forward, if that company is an NCC-licensed telecom company and the transfer is up to 10% or more, CAC will first ask:
“Where is your NCC Letter of No Objection?”
Without it, CAC may reject or query the filing.
Now let’s talk about your role as a CAC agent.
If someone brings you a post-incorporation job involving:
• Share transfer
• Allotment of shares
• Change in ownership structure
• Acquisition of shares
Your first question should be:
“What kind of company is this?”
If it is a telecom company regulated by NCC, then you must verify whether NCC approval is required before proceeding.
This is exactly the kind of due diligence I always preach.
Don’t just collect the RC number and start filing.
Ask questions.
Understand the industry.
Verify regulatory requirements.
Does this apply only to MTN, Glo, Airtel and 9mobile?
No.
It applies to any company that holds an NCC license.
The confusion many people will have is assuming it applies to everyone selling data.
It doesn’t.
For example:
Someone operating a business that sells:
• Mobile data subscriptions
• Airtime top-up
• Cable TV subscriptions
• Utility bill payments
Usually operates as a reseller or agent.
Such businesses are generally not the target of this directive unless they themselves hold an NCC telecommunications license.
The real targets are companies licensed by NCC such as:
• Mobile Network Operators
• Internet Service Providers (ISPs)
• Infrastructure Companies
• Telecommunications Service Providers
• Other NCC-regulated communications operators
So if Nkechi owns a VTU business selling data and airtime, this directive is most likely irrelevant to her business.
But if a licensed telecom company wants to change ownership by transferring 10% or more of its shares, then NCC approval becomes mandatory before CAC can process the change.
The lesson for every CAC agent is simple:
The days of treating every post-incorporation filing the same way are over.
Before filing any share transfer, ask:
-
What industry is this company operating in?
-
Is there a sector regulator involved?
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Does that regulator require approval before CAC filing?
That one question can save you from serious queries and regulatory trouble.
#TheSFM ?❤️
