The Nigerian Communications Commission (NCC) has rolled out a tougher corporate governance framework for telecom operators, aimed at strengthening transparency, internal control, and risk management across the fast-evolving telecommunications sector.
Speaking at the official launch of the 2025 Guidelines on Corporate Governance held on Wednesday in Lagos, the NCC’s Executive Vice Chairman, Dr. Aminu Maida, said the new rules are designed to improve long-term business sustainability, strengthen investor confidence, and enhance overall service quality in the sector.
“Corporate governance is no longer a soft requirement. It is now a strategic imperative, especially in a sector central to Nigeria’s digital future and vulnerable to cybersecurity threats, energy shocks, climate risks, and rising consumer demands,” Maida said.
Key reforms in the new guidelines
The NCC’s new governance rules require licensed telecom operators to implement more balanced board structures, increase operational transparency, and tighten internal control mechanisms.
- According to Maida, boards are now expected to include executive, non-executive, and independent directors with demonstrable expertise in ICT and cybersecurity.
- In addition, Maida said all telecom operators must separate the position of Chairman from that of CEO for transparency.
- The framework also formally recognises regulatory officers within telecom firms as key compliance liaisons for the NCC.
- A major highlight is the emphasis on structured risk assessments and the strengthening of internal audit functions.
“Operators must empower internal audits and submit both mid-year and annual compliance reports, which must be certified by their boards,” Maida added.
Governance tied to performance
Dr. Maida disclosed that an internal review conducted by the NCC showed a clear correlation between strong governance practices and superior business performance within the telecom sector.
“Companies with robust governance frameworks consistently outperformed their peers in service delivery, financial management, and regulatory compliance,” he said.
While acknowledging that the new rules may initially disrupt some operators, the NCC emphasized that the long-term gains, such as improved service quality and market trust, will far outweigh the temporary inconvenience.
Enforcement will be rigorous
With over 150 million active telecom subscriptions in Nigeria, Maida described the sector as “critical national infrastructure” supporting key pillars of the digital economy, including finance, healthcare, education, and government services.
He added that the governance guidelines would be phased in depending on the license category of each operator, but warned that enforcement would be firm.
“Operators must view this not as a regulatory burden, but as a blueprint for long-term value creation. Where there is non-compliance, the commission will not hesitate to apply sanctions after the remediation window closes,” he said.
Industry stakeholders back the reforms
Legal expert and Senior Advocate of Nigeria, Prof. Fabian Ajogwu, who led the committee that drafted the first telecom corporate governance code in 2014, praised the NCC for updating the rules to reflect emerging realities such as AI, cybersecurity, and ESG (Environmental, Social, and Governance) priorities.
Also speaking at the event, Titus Osavwe, Coordinating Director at the Financial Reporting Council of Nigeria (FRCN), described the initiative as a “key step” in reinforcing accountability and boosting investor confidence in a vital sector of the economy.
The NCC says it remains committed to stakeholder engagement, capacity-building, and providing technical support as the new framework takes effect.
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