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FG Caps PIE Annual Dues At ₦25 Million, Maintains Pause On FRC Act Implementation

The Federal Government has capped PIE annual dues at ₦25 million, maintaining pause on FRC Act amid stakeholder concerns.

The Federal Ministry of Industry, Trade and Investment has formally addressed widespread concerns raised by stakeholders regarding the implementation of the Financial Reporting Council (Amendment) Act 2023, particularly the introduction of annual dues for Public Interest Entities (PIEs).

In a statement released on Sunday, by the Minister of the Federal Ministry of Industry, Trade and Investment, Jumoke Oduwole, the ministry said that it was prompted by increasing concerns over the financial and operational implications of the amended Act, the Ministry, in March 2025, to convene a high-level stakeholder engagement. 

This followed sustained feedback from key industry bodies—including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA)—who had, since December 2024, expressed strong reservations about the Act’s provisions.

Central to their concerns was the reclassification of large private companies as PIEs, which subjected them to annual dues between 0.02% and 0.05% of turnover, without an upper limit. In contrast, publicly listed companies are required to pay a fixed ₦25 million annual levy, regardless of size or revenue, a disparity that many stakeholders argued could lead to unsustainable compliance costs and dampen investor confidence.

In line with President Bola Ahmed Tinubu GCFR’s 8-Point Agenda and commitment to a pro-business environment, the Ministry, under the leadership of Oduwole, held a public consultation on 26 March 2025. This led to two immediate actions: a temporary administrative pause on the enforcement of the controversial provisions, and the establishment of a Technical Working Group (TWG) to carry out a comprehensive review.

The TWG—comprising NECA, MAN, ALTON, NACCIMA, PFPTRC, CAC, SEC, and the Financial Reporting Council of Nigeria (FRCN)—met six times over three weeks. Their consultations culminated in a detailed report assessing the implications of Section 33D of the amended Act. The findings were submitted to the Minister on 17 April 2025 and subsequently presented to the President.

Following these developments, Dr Oduwole announced the Ministry’s decision to maintain the administrative pause in the medium to long term, pending broader legislative review. To ensure immediate clarity and fairness, the Minister has also directed the FRC to implement an interim cap of ₦25 million on annual dues payable by private sector PIEs—matching the current cap for publicly quoted companies.

“This directive creates a stable environment for compliance for affected companies in the short term and reflects the Ministry’s commitment to prioritizing transparency, investor confidence, and regulatory equity while allowing the Ministry of Justice to appropriately determine the longer-term path for seeking legislative amendments on behalf of the Federal Government, if required,” Oduwole said.

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