NCC Introduces Stricter Corporate Governance Guidelines for Nigerian Telecom Operators
The Nigerian Communications Commission (NCC) has unveiled a strengthened corporate governance framework for telecom operators, aimed at enhancing transparency, accountability, and risk management in Nigeria’s fast-evolving digital landscape.
Launched at an official event in Lagos, the 2025 Guidelines on Corporate Governance mark a significant regulatory shift that will impact both large and small telecom operators in the country.
Governance Now a Strategic Imperative, Says NCC
Speaking at the event, Dr. Aminu Maida, NCC’s Executive Vice Chairman, described the new rules as a strategic move to ensure long-term business sustainability, boost investor confidence, and elevate service quality.
“Corporate governance is no longer a soft requirement. It is now a strategic imperative,” said Maida. “The telecom sector is central to Nigeria’s digital future and increasingly vulnerable to cybersecurity threats, energy shocks, and climate risks.”
Key Reforms in the 2025 Governance Guidelines
The new framework includes several important reforms designed to improve corporate transparency and operational efficiency among telecom companies:
- Stronger Board Composition: Telecom operators must now include executive, non-executive, and independent directors, with verifiable experience in ICT and cybersecurity.
- Separation of Roles: The roles of Chairman and Chief Executive Officer (CEO) must now be held by separate individuals to promote clearer governance.
- Compliance Officers: Regulatory liaisons within each operator are now formally recognised as key compliance officers by the NCC.
- Mandatory Risk Assessments: Operators must conduct structured risk assessments and strengthen internal audit functions.
- Audit Reporting: Mid-year and annual compliance reports must be submitted to the NCC, certified by company boards.
Corporate Governance Linked to Better Performance
Dr. Maida revealed that an internal NCC study showed companies with strong governance structures outperformed peers in areas such as service delivery, financial stability, and regulatory compliance.
“There is a direct correlation between governance and performance,” Maida emphasized. “Operators with solid frameworks consistently deliver better outcomes.”
Phased Implementation and Rigorous Enforcement
With Nigeria hosting over 150 million active telecom subscriptions, the NCC considers the industry critical national infrastructure. Enforcement of the new rules will be phased by license category, but Maida warned of strict compliance expectations.
“This is not a regulatory burden. It’s a blueprint for long-term value creation. Non-compliance will attract sanctions once the remediation window closes.”
Industry Experts Back the NCC’s Governance Overhaul
Prominent legal expert, Prof. Fabian Ajogwu (SAN), who led the team behind Nigeria’s first telecom governance code in 2014, applauded the update. He praised the NCC for aligning with modern priorities like AI governance, cybersecurity, and ESG (Environmental, Social & Governance) best practices.
Titus Osavwe, Coordinating Director at the Financial Reporting Council of Nigeria (FRCN), described the move as a “key step” in strengthening accountability and attracting investment to the telecom sector.
What This Means for Nigerian Telecom Operators
Operators must now prioritise governance reforms to:
- Comply with new NCC guidelines
- Build stakeholder trust
- Improve resilience to digital and operational risks
- Deliver higher quality telecom services nationwide
The NCC has pledged to provide ongoing technical support, capacity-building, and stakeholder engagement throughout the rollout of the new framework.
