The Nigerian Communications Commission (NCC) has announced new corporate governance rules prohibiting its former senior officials from taking up employment or board positions with telecom operators until five years after leaving the Commission.

Aminu Maida, Executive Vice Chairman of the Commission, said the new rules are intended to promote business stability, strengthen investor confidence, and improve service quality in the telecom sector.

According to the updated Corporate Governance Guidelines for the Communications Industry, individuals who have served as Chairman, Executive Vice Chairman, or Board Commissioners whether in executive or non-executive roles, are now barred from holding any position in licensed telecom companies for five years after leaving the Commission.

Under the same guidelines, NCC Department Directors face a three-year cooling-off period before they can take up roles with any licensee regulated by the Commission.

The rules also introduce stricter internal governance for telecom operators. Board Chairmen and Vice-Chairmen are prohibited from exercising executive powers or serving as Managing Directors or Chief Executive Officers (MD/CEOs). Additionally, former Board Chairmen and non-executive directors may not take up executive roles in the same company or its affiliates until five years after leaving the board.

To reduce conflicts of interest, the guidelines also limit the number of family members on a licensee’s board to two.

According to the NCC, the policy aims to encourage transparency, accountability, and ethical conduct within the telecommunications sector, while supporting innovation and regulatory compliance.

The rules apply to all communications companies holding individual licences and paying Annual Operating Levies (AOL), as required by the AOL Regulations 2022. The Commission noted that implementation may vary by licence category, with phased compliance plans to be communicated in writing.

Speaking at the launch, Maida said corporate governance is now a strategic necessity in a sector central to Nigeria’s digital future and exposed to risks such as cybersecurity threats, energy supply issues, and changing consumer demands.

“Corporate governance is no longer a soft requirement. It is now a strategic imperative,” he said.

Maida also noted that an internal NCC review found a clear link between strong governance and better performance in the telecom sector.

“Companies with solid governance structures consistently performed better in service delivery, financial management, and regulatory compliance,” he added.

While acknowledging that the transition may pose short-term challenges, the Commission emphasized that the long-term benefits, such as better service and increased public trust, will outweigh any initial difficulties. (BusinessDay)