FRC Amendment: FG Suspends Implementation, Caps Dues for Private Firms

The Federal Government has suspended the implementation of contentious provisions in the Financial Reporting Council (Amendment) Act 2023 following concerns raised by private sector stakeholders. Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, announced the decision in a release on Monday. She said it followed a series of high-level consultations with key industry groups. […]

The Federal Government has suspended the implementation of contentious provisions in the Financial Reporting Council (Amendment) Act 2023 following concerns raised by private sector stakeholders.

Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, announced the decision in a release on Monday.

She said it followed a series of high-level consultations with key industry groups.

These include the Nigeria Employers’ Consultative Association (NECA), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Oil Producers Trade Section (OPTS).

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At the heart of the concerns is the reclassification of large private companies as Public Interest Entities, requiring them to remit annual dues between 0.02 and 0.05 percent of turnover without a ceiling.

This is in contrast to the ₦25 million cap placed on publicly listed companies regardless of their size.

Stakeholders warned that the provision could increase compliance costs and hurt investor confidence.

But the minister said the policy was part  of President Bola Ahmed Tinubu’s pro-business posture under the 8-Point Agenda and has responded with practical measures.

She explained that a stakeholder consultation was held on March 26, 2025, leading to an administrative pause and the formation of a Technical Working Group.

The group, she noted, comprised representatives from NECA, MAN, ALTON, NACCIMA, CAC, SEC, and others and held six meetings over three weeks that culminated in the submission of a comprehensive report on April 17, 2025.

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

“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”, she added.