FG Suspends Implementation Of FRC Amendment Act, Imposes ₦25 Million Dues On ‘Big’ Firms

President Bola Ahmed Tinubu’s government has temporarily suspended the implementation of contentious provisions in the Financial Reporting Council (FRC Amendment) Act 2023.

Naijaonpoint reports that this development follows widespread backlash from private sector stakeholders.

The move was disclosed in a statement on Monday by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, who noted that the decision came after weeks of high-level consultations with key industry representatives.

Sector Groups Raise Red Flags

Among the organisations that raised strong objections are the Nigeria Employers’ Consultative Association (NECA), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Oil Producers Trade Section (OPTS).

Central to the controversy is a provision in the amended Act that reclassifies large private firms as Public Interest Entities (PIEs), thereby mandating them to pay annual regulatory dues ranging between 0.02 and 0.05 per cent of turnover, without any cap.

This contrasts sharply with publicly listed companies, which are subject to a ₦25 million cap regardless of size. Stakeholders argued that such a disparity could lead to disproportionately high compliance costs and deter investors.

Tinubu Responds to Industry Concerns

Oduwole clarified that the Act was initially designed to align with President Bola Tinubu’s pro-business stance, as part of his 8-Point Agenda. However, she said the administration has listened to the concerns and is taking practical steps to address them.

“As part of President Bola Ahmed Tinubu’s pro-business posture, this policy was aimed at improving financial transparency. But we have responded with measures that reflect stakeholder feedback,” she said.

A stakeholder meeting held on March 26, 2025, resulted in an administrative suspension and the creation of a Technical Working Group to review the issues.

Working Group Submits Report

According to the minister, the Technical Working Group included representatives from NECA, the Manufacturers Association of Nigeria (MAN), the Association of Licensed Telecoms Operators of Nigeria (ALTON), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Corporate Affairs Commission (CAC), the Securities and Exchange Commission (SEC), among others.

The group held six sessions within three weeks and submitted a comprehensive report on April 17, 2025.

“Based on the findings, President Tinubu was briefed and recommended the continuation of the pause pending legislative review,” Oduwole said.

₦25m Interim Cap Imposed

In the meantime, the Ministry has directed the Financial Reporting Council to impose a ₦25 million interim cap on annual dues for private PIEs, aligning them with publicly listed entities.

“This move will ensure regulatory equity, boost investor confidence, and allow for a broader review of the Act, with input from the Ministry of Justice where necessary,” the minister added.

“To provide immediate relief, the Ministry has now directed the Financial Reporting Council to impose an interim cap of ₦25 million on annual dues for private sector PIEs, aligning them with the publicly quoted companies.

“This move will ensure regulatory equity, boost investor confidence, and allow for a broader review of the Act, with input from the Ministry of Justice where necessary,” Oduwole stated.