The Nigerian Communications Commission (NCC) has introduced strict corporate governance rules that will bar its top officials from taking up roles in telecom companies they regulate until five years after leaving office.
Under the new Corporate Governance Guidelines for the Communications Industry, the Chairman, Executive Vice-Chairman, and Board Commissioners, both executive and non-executive, are prohibited from being appointed to any position in a licensed telecom company until five years after their exit from the Commission.
Similarly, Directors of Departments at the NCC face a three-year cooling-off period before they can take jobs with any licensee under the Commission’s supervision.
Telecom operators’ Board
The guidelines also strengthen internal checks within telecom companies by prohibiting any Board Chairman or Vice-Chairman from exercising executive powers or serving as MD/CEO of a licensee.
- Former board chairmen or non-executive directors cannot become MD/CEO or assume other executive roles in the same company or its affiliates until five years after leaving their board positions.
- In addition, no more than two members of the same family may sit on the board of a licensee at the same time.
- According to the NCC, the policy aims to promote transparency, accountability, due process, and ethical standards in Nigeria’s telecom industry while fostering innovation.
- The rules apply to all communications companies holding individual licences and paying Annual Operating Levies (AOL), as stipulated under the AOL Regulations 2022.
The Commission said it may adapt the application of the guidelines to different licence categories and will communicate any phased compliance measures in writing.
Backstory
NCC launched the new corporate governance in Lagos last week at an event that brought together all stakeholders in the telecom industry.
Speaking at the event, 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.
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.
