NCC Enforces 5-Year Ban on Regulators Joining Telecom Firms to Boost Governance

The Nigerian Communications Commission (NCC) has implemented a five-year ban on former top officials from joining the telecom companies they previously regulated, as part of a broader initiative to improve corporate governance within the sector. The rules, announced on August 11, 2025, apply to the NCC’s Chairman, Executive Vice-Chairman, Board Commissioners (both executive and non-executive), and departmental directors, who are barred from taking roles in licensed telecom companies for five or three years, respectively, after leaving office [1].

The new measures are part of the 2025 Corporate Governance Framework, aimed at fostering transparency, accountability, and ethical standards in Nigeria’s telecommunications industry [1]. The policy is intended to prevent conflicts of interest and ensure impartial regulation by creating a clear separation between regulators and the industry [1]. The NCC also imposed additional restrictions on telecom operators, including barring board chairmen or vice-chairmen from holding executive powers or serving as CEO, and limiting family members from serving on the same board [1].

Dr. Aminu Maida, NCC’s Executive Vice-Chairman, emphasized the importance of the reforms, stating that corporate governance is now a strategic imperative rather than a soft requirement [1]. He cited an internal review showing that companies with strong governance frameworks outperformed their peers in service delivery, financial management, and regulatory compliance [1]. The reforms were developed through extensive stakeholder engagement, with legal experts and industry players participating in the drafting process [1].

Nigeria’s telecom sector, a critical component of its digital economy, faces challenges such as cybersecurity threats, rising consumer demands, and energy shocks. The NCC’s new rules aim to address governance weaknesses and promote innovation and trust in the sector [1]. The guidelines apply to all communications companies holding individual licenses and paying Annual Operating Levies (AOL) under the 2022 AOL Regulations [1].

To support compliance, the NCC indicated flexibility in applying the rules across different license categories and plans to communicate phased compliance measures [1]. While the changes may cause short-term disruptions for operators, the NCC expects long-term benefits, including improved service quality and stronger market trust [1].

Recent NCC initiatives include a 50% tariff adjustment for telecom operators in January 2025 and a directive requiring operators to announce major network outages and compensate subscribers [1]. These steps reflect the regulator’s effort to balance industry sustainability with consumer protection. The NCC also launched its first-ever Regulatory Impact Assessment (RIA) in June 2025, which showed a 22.9% increase in levy collections but a decline in compliance from 28% in 2022 to 26% in 2023, underscoring the need for clearer regulations [1].

The NCC has warned that non-compliance with the new governance rules will face sanctions after a remediation window [1]. For consumers, the guidelines are expected to result in enhanced transparency and improved service quality [1]. As the reforms take effect, industry stakeholders will be monitoring their impact on the long-term stability and growth of Nigeria’s telecom sector [1].

Source: [1] title1 (https://coinmarketcap.com/community/articles/689b1671be4ae366a78a0887/)