The Nigeria Employers’ Consultative Association has strongly condemned the Financial Reporting Council of Nigeria over the imposition of what NECA described as “outrageous” annual dues on private and non-quoted companies.
According to a statement, NECA warned that the move could cripple businesses and stifle economic growth.
“This outcry follows the implementation of the Financial Reporting Council Amendment Act 2023 (FRC Act), which expanded the scope of companies under the FRC’s regulatory oversight,” the statement said.
It mentioned that the new policy significantly increased the annual dues of private firms from N1m to hundreds of millions of naira, depending on their turnover.
Meanwhile, publicly listed companies’ dues remain capped at N25m. NECA’s Director-General, Adewale-Smatt Oyerinde, denounced the move as unjust and contradictory to the federal government’s efforts to enhance Nigeria’s business environment, attract investment, and create jobs.
He warned that the increased financial burden on private firms, already struggling with multiple taxation, regulatory bottlenecks, and rising operational costs, could force many to shut down or downsize.
“This policy is a direct contradiction to the Ease of Doing Business agenda and sends a negative signal to investors,” Oyerinde stated.
“Many companies, especially in manufacturing, trading, and essential services, operate on thin margins. Adding such arbitrary financial demands increases the risk of layoffs, business closures, and an economic downturn,” he added.
Oyeinde further noted that regulatory unpredictability discourages both local and foreign investments, weakening Nigeria’s global competitiveness.
“If regulatory agencies can impose arbitrary levies without due consultation, it erodes investor confidence and pushes businesses to the brink,” he added.
NECA urged the Federal Government and the National Assembly to immediately suspend the enforcement of the new levies and revert to the previous N1m fee structure pending a comprehensive review.
Oyerinde also called for an urgent legislative amendment to the FRC Act to eliminate ambiguities and ensure fair and transparent oversight.
He called for dialogue between the Federal Government, the Ministry of Industry, Trade and Investment, and key stakeholders, including NECA, the Manufacturers Association of Nigeria, and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, to establish a more sustainable and justifiable compliance framework.
“The private sector is the backbone of our economy, and policies that hinder its growth will ultimately harm national development. The government must prioritize economic sustainability over excessive regulation.
“With growing discontent from businesses over multiple taxation and excessive levies, pressure is mounting on the federal government to reconsider the FRC’s new financial demands to avoid worsening Nigeria’s already fragile economic climate,” Oyerinde stressed.