DAARCOMM denies approving shareholding changes after CAC

DAAR Communications Plc (DAARCOMM), Nigeria's largest media conglomerate, has issued a formal denial regarding alleged changes to its shareholding structure, following a discrepancy flagged by the Corporate Affairs Commission (CAC). The statement marks an escalation in what appears to be a serious corporate governance breach affecting one of Nigeria's most prominent listed entities on the Nigerian Exchange (NGX).

The denial comes after CAC filings allegedly showed modifications to DAARCOMM's ownership structure without board authorization—a red flag that has sent ripples through Nigeria's investor community and raises uncomfortable questions about oversight mechanisms at Nigeria's corporate regulator and the company's internal controls.

## What exactly happened with DAARCOMM's shareholding structure?

While DAARCOMM's statement confirms no board approval was granted for shareholding changes, the company has not disclosed specific details about what modifications CAC claims were made, or how long they remained undetected. This opacity is the core concern: if changes occurred without authorization and without immediate detection, what does this say about DAARCOMM's compliance infrastructure? For a media company handling millions in shareholder value and operating across telecommunications, broadcasting, and digital services, such lapses undermine investor confidence.

The distinction between what CAC records show and what DAARCOMM's board approved creates a critical question: did an administrative error occur at CAC, or is there evidence of unauthorized filings? DAARCOMM's legal team would need to prove the former—but silence on this detail suggests the investigation may still be active.

## Why does this matter for NGX-listed companies and foreign investors?

This incident exposes structural vulnerabilities in Nigeria's corporate governance ecosystem. If shareholding changes can be registered without board authorization, the integrity of ownership records—fundamental to transparent markets—is compromised. Institutional investors, especially foreign portfolio managers, rely on CAC filings as proof of legitimate ownership and control. A breakdown here affects share valuations, dividend security, and voting rights certainty.

For DAARCOMM specifically, the stock trades on the NGX main board and holds strategic importance in Nigeria's media sector. Any governance crisis ripples across media advertising spend, regulatory relationships, and content independence—all material to the company's franchise value. The lack of swift public clarity on resolution timelines has already created uncertainty.

## How will this be resolved?

DAARCOMM's path forward requires three parallel actions: (1) a forensic audit of CAC records to determine if filings were unauthorized or mistaken, (2) formal communication to the NGX and the Securities and Exchange Commission (SEC) with a resolution timeline, and (3) enhanced internal controls to prevent recurrence. Without these, the reputational damage will persist, and shareholder litigation risk rises.

The CAC itself faces scrutiny: how was this discrepancy not caught earlier, and what safeguards exist to prevent fraudulent filings? Nigeria's capital markets regulator (SEC) should clarify whether this incident triggers investigations into other listed companies' ownership records—suggesting the problem may be systemic rather than isolated.

For now, DAARCOMM shareholders remain in a state of uncertainty. The company's statement is a denial, not a resolution. Until CAC records are corrected and published alongside independent verification, investors should treat this as an active governance risk.

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