New Corporate Governance Rules Aim to Boost Transparency and Service Quality in Nigeria’s Telecom Sector
The Nigerian Communications Commission (NCC) has unveiled new corporate governance guidelines that bar its top officials from taking up roles in telecom companies they previously regulated for five years after leaving office.
Key Highlights of the NCC Corporate Governance Guidelines
Under the Corporate Governance Guidelines for the Communications Industry:
- Chairman, Executive Vice-Chairman, and Board Commissioners (executive and non-executive) cannot join any licensed telecom company until five years after leaving the Commission.
- Directors of Departments must observe a three-year cooling-off period before joining any licensee under NCC’s supervision.
- Board Chairmen or Vice-Chairmen of telecom operators are prohibited from exercising executive powers or serving as MD/CEO.
- Former Board Chairmen or Non-Executive Directors cannot become MD/CEO or take other executive roles in the same company or affiliates until five years after leaving the board.
- A maximum of two family members can serve on the board of a licensee at the same time.
Purpose of the New Rules
According to the NCC, the policy aims to:
- Strengthen transparency, accountability, and ethical standards in Nigeria’s telecom industry.
- Encourage due process and innovation.
- Improve long-term business sustainability and investor confidence.
- Enhance service quality for consumers.
The rules apply to all communications companies with individual licences and those paying Annual Operating Levies (AOL) under the AOL Regulations 2022.
Background and Industry Impact
The NCC launched the new governance framework at an event in Lagos attended by key telecom stakeholders.
Speaking at the launch, Dr. Aminu Maida, NCC’s Executive Vice Chairman, emphasised that corporate governance is now a strategic imperative in the telecom 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.
He noted that an internal NCC review found a clear link between strong governance practices and superior performance in service delivery, financial management, and regulatory compliance.
While acknowledging potential short-term disruptions for some operators, the NCC stressed that the long-term benefits—including improved market trust—would outweigh any initial challenges.
