Joy Agwunobi
The Nigerian Communications Commission (NCC) has unveiled a comprehensive corporate governance framework aimed at tightening oversight, enhancing transparency, and reinforcing risk management protocols across Nigeria’s telecommunications industry.
The new framework, encapsulated in the 2025 Guidelines on Corporate Governance, was formally launched at a high-level stakeholder event held recently in Lagos.
The initiative signals a strategic shift by the NCC to elevate corporate governance standards in a sector widely regarded as the backbone of Nigeria’s digital economy.
Delivering his keynote address at the launch, Aminu Maida, executive vice chairman of the NCC, said the revised governance guidelines are tailored to promote long-term business sustainability, build investor confidence, and elevate service quality in an industry that is increasingly exposed to global shocks and operational complexity.
“Corporate governance is no longer a soft requirement,” Maida said while also noting “It is now a strategic imperative particularly in a sector central to Nigeria’s digital transformation and one that is increasingly vulnerable to cybersecurity threats, energy disruptions, climate-related risks, and intensifying consumer expectations.”
Under the revised rules, all licensed telecom operators in Nigeria are now required to implement balanced board structures, enhanced internal controls, and greater operational transparency. Boards must now comprise a healthy mix of executive, non-executive, and independent directors, with demonstrated expertise in fields such as ICT and cybersecurity.
A significant change under the new framework is the mandatory separation of the roles of Chairman and Chief Executive Officer (CEO), a global best practice designed to promote accountability and reduce the risk of unchecked executive power.
The NCC has also formalised the position of regulatory compliance officers within telecom firms, recognising them as the principal liaisons between licensed operators and the Commission on governance-related matters.
According to Maida, the framework places strong emphasis on structured risk assessments and a strengthened internal audit function. Operators are now required to empower their audit units and submit both mid-year and annual compliance reports, which must be reviewed and certified by their respective boards of directors.
Maida further revealed that an internal performance review conducted by the NCC demonstrated a strong correlation between sound governance practices and superior business outcomes.
“Telecom companies with robust governance frameworks consistently outperformed their peers—not just in financial management and regulatory compliance, but also in service delivery,” he noted.
While acknowledging that the new rules may initially pose operational and structural adjustments for some telecom firms, the NCC stressed that the long-term benefits, including improved service quality, market resilience, and consumer trust, would far outweigh any short-term disruptions.
Maida underscored the strategic importance of the telecom sector, describing it as “critical national infrastructure” supporting Nigeria’s digital economy across sectors such as finance, education, healthcare, and e-governance.
He explained that the implementation of the revised guidelines will be phased according to the license category of each operator. However, he warned that enforcement would be firm and unwavering.
“Operators must not view this framework as a regulatory burden, but rather as a blueprint for long-term value creation. Where non-compliance is observed, the Commission will not hesitate to apply appropriate sanctions after the remediation window has closed,” he cautioned.
Delivering a goodwill message at the event, Fabian Ajogwu, a legal scholar and corporate governance expert, commended the NCC for updating the guidelines in line with evolving market realities and emerging global risks.
Ajogwu, who chaired the committee that developed the first Code of Corporate Governance for the telecoms sector in 2014, described the revised framework as timely and forward-thinking.
He highlighted the growing relevance of Artificial Intelligence (AI), Cybersecurity, and Environmental, Social and Governance (ESG) issues—factors which the new guidelines now formally address.
In his remarks, Titus Osavwe, coordinating director at the Financial Reporting Council of Nigeria (FRCN), also praised the NCC’s initiative. He described the updated governance guidelines as a pivotal step in strengthening institutional accountability and investor confidence within a vital sector of the Nigerian economy.
Osavwe emphasised that industry-specific governance frameworks, such as the one introduced by the NCC, are crucial to fostering operational discipline and sustainable value creation in high-impact industries.
