NCC Corporate Governance rules ban top officials from telecom jobs for five years

NCC Corporate Governance rules bar top officials from telecom jobs for up to five years, strengthening accountability and ethical standards in Nigeria’s telecom sector

NCC Corporate Governance guidelines have introduced sweeping reforms in Nigeria’s telecom sector, banning senior officials of the Nigerian Communications Commission (NCC) from accepting roles in telecom companies they regulate for up to five years after leaving office.

Also read: NCC unveils telecom reform blueprint in 2024 RIA report

Unveiled in Lagos last week, the Corporate Governance Guidelines for the Communications Industry mark a significant shift in ethics, transparency, and regulatory accountability, targeting what experts have long described as “regulatory capture” and revolving-door practices in the sector.

Under the new rules:

• Chairman, Executive Vice-Chairman, and Board Commissioners (both executive and non-executive) cannot be appointed to any position in a licensed telecom firm until five years after exiting the NCC.
• Department Directors at the NCC are required to observe a three-year cooling-off period before joining any company under the Commission’s regulatory umbrella.

The guidelines also restrict internal conflicts within telecom firms by:

• Banning Board Chairmen or Vice-Chairmen from holding executive powers or becoming MD/CEO.
• Preventing former board leaders from assuming executive roles within the same company or its affiliates until five years after leaving.
• Limiting family influence, with no more than two members of the same family allowed to serve on a licensee’s board simultaneously.

Dr. Aminu Maida, NCC’s Executive Vice Chairman, described the guidelines as a strategic imperative, not just a regulatory formality.

“Corporate governance is no longer a soft requirement. It is now a strategic imperative—especially in a sector so central to Nigeria’s digital future and increasingly vulnerable to cybersecurity threats, energy shocks, and climate risks,” Maida stated at the launch event.

He revealed that an internal audit by the NCC showed companies with stronger governance frameworks consistently outperformed their peers in service delivery, financial discipline, and regulatory compliance.

The rules apply to all communication firms with individual licences that remit Annual Operating Levies (AOL), under the AOL Regulations 2022.

However, the NCC clarified that compliance timelines may be adapted for different licence categories, with phased implementation plans communicated in writing.

While acknowledging that the reforms might initially disrupt existing corporate structures, the Commission believes the long-term benefits—enhanced trust, investor confidence, and service quality—will significantly outweigh short-term challenges.

These governance reforms come at a critical time as Nigeria’s telecom industry navigates rapid digital expansion and increasing consumer expectations.

Also read: Telcos take over USSD billing as CBN, NCC approve direct deductions from airtime

By prioritizing ethical standards, transparency, and accountability, the NCC aims to fortify the sector’s role in driving Nigeria’s digital economy.

Source: Read more at theheute.com.ng

Peculiar Adirika