By Kunle Sanni –
The federal government has directed the Financial Reporting Council (FRC) to impose an interim cap of ₦25 million on annual dues payable by private sector Public Interest Entities (PIEs), aligning with the dues already set for publicly listed companies.
The Federal Ministry of Industry, Trade and Investment, led by Minister Dr. Jumoke Oduwole, announced the decision to provide immediate clarity and create a stable compliance environment for affected companies, pending a comprehensive legislative review.
The decision follows months of stakeholder engagement sparked by the Financial Reporting Council (Amendment) Act 2023, which reclassified large private firms as PIEs, significantly increasing their financial obligations. While listed companies had a cap of ₦25 million, private PIEs faced uncapped dues ranging from 0.02% to 0.05% of turnover.
Industry groups, including the Oil Producers Trade Section (OPTS), Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), strongly opposed the changes, warning it could undermine business confidence and competitiveness.
In response, the Ministry convened a public consultation on March 26, 2025, and set up a Technical Working Group involving stakeholders like NECA, MAN, ALTON, NACCIMA, SEC, CAC, and the FRC. The group held six meetings and submitted its report in April, highlighting the negative impacts of Section 33D of the amended Act.
Following the group’s recommendations, Oduwole briefed President Bola Ahmed Tinubu and advised maintaining a pause on enforcement while applying the interim cap, as the Ministry of Justice works on a long-term legislative solution.
The Minister revealed the directive aims to restore regulatory certainty, promote investor confidence, and ensure fairness in Nigeria’s business environment.
“This decision reflects our commitment to transparency, stability, and supporting private sector growth,” Oduwole added.
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