NCC imposes stricter governance rules on telecom sector in Nigeria
The Nigerian Communications Commission (NCC) has introduced a more stringent corporate governance framework for telecommunications operators in Nigeria. This initiative, officially launched on Wednesday, in Lagos, aims to enhance transparency, internal controls, and risk management within the rapidly evolving telecom sector.
The initiative, according to the Commission, is designed to drive transparency, bolster internal control systems, and mitigate growing risks in the fast-evolving digital ecosystem.
The new 2025 Guidelines on Corporate Governance outline mandatory requirements for telcos to adopt more accountable leadership structures and sound risk management practices.
The policy launch was led by the NCC’s Executive Vice Chairman (EVC), Aminu Maida, who described the reforms as a “strategic imperative” for Nigeria’s digital future.
“Corporate governance is no longer a soft requirement. It is now a strategic necessity, especially in a sector that underpins our digital economy and is increasingly exposed to cybersecurity threats, energy volatility, climate risks, and rising consumer expectations,” Maida stated.
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Maida emphasized that the Commission’s internal research had revealed a strong correlation between companies with robust governance systems and superior performance in service delivery, financial sustainability, and regulatory compliance.
“Operators that have embraced strong governance consistently outperformed their peers. This reform is about institutionalizing those best practices across the entire sector,” he noted.
While the Commission acknowledged the potential short-term operational disruptions for some players, Maida reassured stakeholders that the reforms would be implemented gradually based on operator license categories. However, he warned that non-compliance would attract sanctions.
“This is not a bureaucratic checkbox. It is a blueprint for sustainable value creation. The Commission will not hesitate to enforce penalties where operators fail to meet their obligations after the remediation period,” Maida cautioned.
Also speaking at the event, Titus Osavwe, Coordinating Director at the Financial Reporting Council of Nigeria (FRCN), described the guidelines as a “vital move to reinforce corporate accountability and attract sustainable investment into the sector.”
Key reforms introduced in the 2025 Guidelines on Corporate Governance include:
Balanced Board Structures: Boards are now required to include executive, non-executive, and independent directors who possess demonstrable expertise in Information and Communication Technology (ICT) and cybersecurity.
Separation of Roles: The framework mandates the separation of the Chairman and CEO positions to ensure greater transparency and accountability.
Regulatory Officer Recognition: Regulatory officers within telecom firms are formally recognized as key compliance liaisons for the NCC, streamlining communication and accountability.
Enhanced Risk Management and Internal Audit: A major emphasis is placed on structured risk assessments and the strengthening of internal audit functions. Operators must empower internal audits and submit board-certified mid-year and annual compliance reports.
ESG and CSR Reporting: The new guidelines require Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) reporting, focusing on aspects like customer welfare, energy efficiency (including renewables at network sites), supply chain integrity, and community impacts.
Controls on Related Party Transactions: Robust controls on related party transactions are introduced.
