President Bola Tinubu has officially ordered a temporary suspension of the Financial Reporting Council (FRC) Amendment Act 2023, which had introduced new annual regulatory dues for large private companies categorized as Public Interest Entities (PIEs). This decision comes after months of persistent advocacy from the private sector and a thorough technical review initiated by the Federal Ministry of Industry, Trade and Investment.
Okay.ng reports that the Ministry disclosed the move was necessary due to growing concerns from stakeholders about the financial and compliance burdens the amended Act imposed on non-listed companies. The Act required these private PIEs to pay between 0.02% and 0.05% of their annual turnover as dues, without any upper limit, a stipulation that many argued was disproportionate and unsustainable.
In contrast, publicly listed companies were mandated to pay a flat fee of N25 million annually, regardless of their size or revenue. Jumoke Oduwole, the Minister of Industry, Trade and Investment, emphasized in a statement that this disparity raised serious questions about fairness, sustainability, and the ease of doing business in Nigeria.
The Minister recalled that on March 26, 2025, she convened a high-level consultation with key industry stakeholders, including the Oil Producers Trade Section, the Association of Licensed Telecommunications Operators of Nigeria, and the Nigeria Employers’ Consultative Association. These groups expressed strong opposition to the dues, highlighting the negative impact on businesses amid challenging economic conditions.
Following the consultations, it was agreed that the enforcement of the new dues would be paused for no longer than 60 days. The Ministry established a Technical Working Group that met six times over three weeks and submitted its report on April 17, 2025. After reviewing the findings, President Tinubu formally approved the continued suspension of the dues.
Oduwole explained that the interim directive aims to foster stability and send a clear message that the current administration prioritizes transparency, investor confidence, and fairness in regulatory frameworks. She added, “The Ministry of Justice will determine if a formal legislative amendment is necessary in the long term.”
The statement further detailed, “To provide immediate clarity, the Honourable Minister has directed the Financial Reporting Council to apply an interim cap on annual dues payable by private sector PIEs at N25 million, aligned with the cap already in place for publicly listed entities under the legislation.”
President Tinubu’s decision is seen as a victory for Nigeria’s organized private sector, which had warned that unchecked regulatory levies could deter local investment and exacerbate economic fragility. Since December 2024, when early drafts of the policy were circulated, stakeholders have cautioned against the reclassification of large private companies as PIEs without adequate consultation.
Oduwole reaffirmed the Federal Government’s commitment to its 8-Point Agenda, particularly economic diversification, job creation, and attracting investment. The Financial Reporting Council has been instructed to comply with the interim cap while awaiting further guidance from the Ministry of Justice and the National Assembly.
The FRC Amendment Act 2023 was originally designed to enhance financial transparency by extending regulatory oversight to large private firms, but this recent pause reflects a careful balancing of regulatory goals with economic realities.
