Minister of Industry Trade and Investment, Jumoke Oduwole, on Sunday directed the Financial Reporting Council of Nigeria (FRCN) to apply an interim cap on annual dues payable by private sector Public Interest Entities (PIEs) at N25 million.
The move will also aligned the dues with the cap already in place for publicly listed entities under the the Financial Reporting Council (FRC) (Amendment) Act 2023.
In a statement, the minister stated that the directive will create a stable environment for compliance for affected companies in the short term.
This, she said, further reflected the ministry’s commitment to prioritising 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.
In arriving at the directive, Oduwole explained that on March 2025, the ministry had convened a high-level stakeholder engagement in response to the Financial Reporting Council (FRC) (Amendment) Act 2023.
The initiative was prompted by growing concerns regarding the provisions and implementation of annual dues for Public Interest Entities (PIEs).
She noted tha as early as December 2024, leading stakeholders-including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA)-had expressed reservations through direct consultations and public advocacy over the section of the legislation.
According to the minister, a key issue raised was the reclassification of large private companies as PIEs, which imposed a disproportionate financial burden.
Under the amended Act, such companies are required to remit annual dues ranging from 0.02 per cent to 0.05 per cent of turnover, with no upper limit-compared to a fixed N25 million levy for publicly quoted companies, regardless of their size or market capitalisation.
However, the minister pointed out that while the FRCN continues to play a central role in setting and enforcing accounting and financial reporting standards, stakeholders observed that these provisions could lead to unintended unsustainable increased compliance costs, and ultimately negatively affect investor confidence.
She said the administration of President Bola Tinubu remained firmly committed to adopting a listening posture and pro-business approach, as articulated in its policy thrust in implementing the 8-Point Agenda.
Nonetheless, Oduwole said, “In response, on March 26, 2025, the ministry held a formal public stakeholder consultation to assess the policy implications and ensure alignment with principles of fairness, transparency, and economic competitiveness.
“The consultation resulted in two key actions: a temporary administrative pause on implementation; and the establishment of a Technical Working Group to provide deeper analysis.
“In line with this commitment, the Technical Working Group coordinated by the Ministry, comprising NECA, MAN, ALTON, NACCIMA, PFPTRC, CAC, and SEC, along with a robust team from the FRCN, met six times over a three-week period for stakeholder consultations.
“These engagements culminated in a report assessing the implications of Section 33D of the FRC (Amendment) Act 2023 submitted to the Honourable Minister on April 17, 2025”.
Continuing, she said, “The Honorable Minister of industry trade and investment provided a detailed briefing to Mr. President on the critical concerns raised by organised private sector stakeholders prior to the implementation of the administrative pause and made recommendations based on the submitted report and affirms that the administrative pause will be maintained in the mid- to long-term, pending a broader legislative review.”
James Emejo and Dike Onwuamaeze
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