A more stringent corporate governance framework for telecom operators has been implemented by the Nigerian Communications Commission (NCC) in an effort to improve industry-wide risk management, internal controls, and transparency.
Aminu Maida, executive vice-chairman (EVC) of the NCC, stated during the official unveiling of the 2025 guidelines on corporate governance in Lagos on Wednesday that the new regulations are intended to boost investor confidence, improve service quality, and increase long-term company sustainability.
“The need for corporate governance is no longer optional. In a sector that is essential to Nigeria’s digital future and vulnerable to cybersecurity threats, climate risks, energy shocks, and growing consumer demands, it is now strategically necessary, Maida stated.
He clarified that telecom licensees would have to create more rigorous internal control mechanisms, improve transparency, and implement balanced board structures in order to comply with the new regulations.
The head of the NCC stated that executive, non-executive, and independent directors with proven knowledge of cybersecurity and information and communication technology (ICT) were expected to serve on boards.
The chairman and CEO roles should be kept distinct for more openness, according to the EVC, and telecom companies’ regulatory officers will be officially acknowledged as important compliance liaisons for the NCC.
“Operators must submit annual and mid-year compliance reports that are certified by their boards and empower internal audits,” he continued.
According to Maida, an NCC internal analysis revealed a direct link between improved business success in the industry and robust corporate governance.
“In service delivery, financial management, and regulatory compliance, companies with strong governance frameworks consistently outperformed their peers,” the head of the NCC stated.
He went on to say that regulatory personnel working for licensees are now officially acknowledged by the commission as important contacts for compliance monitoring.
The new framework’s emphasis on risk management and internal audits is one of its main features.
In order to guarantee supervision, operators are expected to carry out systematic risk assessments and give internal auditing authority.
Annual and mid-year compliance reports must be submitted in accordance with the requirements, and the board of directors must certify them.
“Our objective is straightforward: to guarantee that telecom boards and management are appropriately constituted to deliver dependable services, safeguard infrastructure, and address the ever-changing challenges of the industry,” Maida stated.
He claims that the internal study conducted by the commission demonstrates a direct correlation between excellent performance in the telecom industry and robust governance.
“We carried out an extensive analysis, and the findings were convincing.
The head of the NCC stated that “businesses with strong governance frameworks continuously outperformed others in areas of service delivery, financial management, and regulatory compliance.”
The commission emphasised that the long-term advantages will exceed any short-term difficulties, even if it acknowledged that stricter restrictions would initially cause some operators to experience disruptions.
Maida emphasised that accountability would be rigorously enforced and restated the commission’s dedication to technical assistance, capacity-building, and stakeholder engagement.
“The telecom industry is now regarded as vital to Nigeria’s economy, supporting digital infrastructure across finance, education, healthcare, and government services, with over 200 million active subscriptions,” he stated.
According to Maida, the new governance structure was required to keep up with the complexity and size of the industry.
He highlighted that strict enforcement would be applied, but that the standards will be implemented gradually based on the type of licence held.
Operators need to see this as a guide for creating long-term value rather than as a regulatory burden.
He declared, “The commission will not hesitate to apply sanctions where there is non-compliance after remediation windows close.”
Prof. Fabian Ajogwu, Senior Advocate of Nigeria (SAN), praised the NCC for revising the rules to take into account contemporary circumstances in his goodwill letter.
He pointed out that cybersecurity, artificial intelligence, and environmental, social, and governance (ESG) issues were a few of the contemporary realities that were represented.
The updated principles are necessary and timely, according to Ajogwu, who chaired the team that created the original Code of Corporate Governance for the telecom industry in 2014.
The idea was also praised by Titus Osawe, Coordinating Director of the Financial Reporting Council of Nigeria (FRCN), who called it a crucial step in bolstering good governance in a crucial area of the economy.
According to Osawe, industry-specific governance structures strengthened investor confidence and accountability.
Although he admitted that some operators would initially find the new regulations difficult to implement, he said that any short-term disruption would be outweighed by the long-term advantages, which include increased market trust and service delivery.
The NCC EVC defined the telecom sector, which has more than 150 million active subscriptions, as “critical national infrastructure” that supports the main pillars of Nigeria’s digital economy, including as public services, healthcare, education, and finance.
Although he emphasised that enforcement would be strict, he stated that the new regulations would be implemented gradually according to the types of operators’ licenses.
“After the remediation window closes, the commission will not hesitate to apply sanctions where there is non-compliance,” he stated.
Maida urged operators to view the new regulations as a guide for generating long-term value rather than as a regulatory burden.
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