The Federal Government has responded to mounting concerns from the private sector over provisions in the Financial Reporting Council (Amendment) Act, 2023, particularly those relating to increased financial obligations imposed on Public Interest Entities (PIEs).
In a statement issued by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the government acknowledged the widespread unease among corporate stakeholders and confirmed ongoing efforts to resolve the issues raised.
According to the Minister, the Ministry convened a high-level stakeholder consultation in March 2025 to address objections surrounding the new structure of annual dues introduced under the amended legislation. The meeting followed months of feedback from major business associations, including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), who first flagged their concerns in late 2024.
At the heart of the controversy is the reclassification of several large private companies as Public Interest Entities, thereby subjecting them to annual levies between 0.02% and 0.05% of their turnover with no cap. In contrast, publicly listed firms continue to pay a fixed annual fee of ₦25 million, regardless of revenue or size.
Industry representatives argued that the revised dues were disproportionately high and could create excessive compliance costs, potentially dampening investor confidence and damaging Nigeria’s business climate.
In response to these concerns, the Ministry initiated a formal review process on March 26, 2025. This resulted in two immediate outcomes: a temporary pause in the implementation of the amended dues framework and the formation of a Technical Working Group to conduct a thorough policy review.
The Working Group, composed of representatives from NECA, MAN, ALTON, NACCIMA, PFPTRC, CAC, SEC, and officials from the Financial Reporting Council of Nigeria (FRCN), met six times over a three-week period. Their deliberations culminated in the submission of a detailed report to the Minister on April 17, 2025.
Following the submission, Dr. Oduwole briefed President Bola Tinubu on the findings and conveyed recommendations from the private sector. It was agreed that the administrative suspension would remain in effect over the medium to long term, pending legislative reassessment.
To provide immediate relief and regulatory clarity, the Minister directed the FRCN to apply an interim cap of ₦25 million on annual dues for private PIEs mirroring the limit already applicable to publicly quoted companies.
“This interim measure ensures consistency in regulatory obligations while protecting investor confidence and supporting a stable business environment,” the statement read.
The Ministry also reaffirmed its commitment to transparency and fairness, noting that any long-term amendments to the Act will be pursued through appropriate legislative channels in consultation with the Ministry of Justice.
