The execution of controversial elements in the Financial Reporting Council (FRC Amendment) Act 2023 has been temporarily halted by the administration of President Bola Ahmed Tinubu.
According to reports, stakeholders in the private sector have widely criticized this move.
The decision was made following weeks of high-level meetings with important industry stakeholders, according to a statement released Monday by Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment.
Sector Groups Cause Concern
The Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA) are among of the organizations who voiced strong opposition.
A clause in the revised Act that reclassifies major private companies as Public Interest Entities (PIEs) and requires them to pay annual regulatory dues that range from 0.02 to 0.05 percent of turnover, without a cap, is at the heart of the debate.
In stark contrast, publicly traded corporations, regardless of size, are capped at ₦25 million. Stakeholders worried that this discrepancy would discourage investors and result in disproportionately high compliance expenses.
Tinubu Addresses Industry Issues
Oduwole explained that the Act was first drafted as part of President Bola Tinubu’s 8-Point Agenda in order to support his pro-business views. She did, however, add that the administration has heard the worries and is acting to resolve them.
This policy was intended to increase financial transparency as part of President Bola Ahmed Tinubu’s pro-business stance. However, we have taken action based on stakeholder input,” she stated.
Following a stakeholder meeting on March 26, 2025, a Technical Working Group was established to examine the issues and an administrative suspension was imposed.
Report submitted by the working group
NECA, the Manufacturers Association of Nigeria (MAN), the Association of Licensed Telecoms Operators of Nigeria (ALTON), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), and others were represented on the Technical Working Group, the minister said.
Read Also: FG Plans Major Review of Civil Servants’ Healthcare Policy Over Growing Concerns
Within three weeks, the panel convened six sessions, and on April 17, 2025, they turned in a thorough report.
Oduwole stated, “President Tinubu was briefed on the findings and suggested the continuation of the pause pending legislative review.”
₦25m Temporary Cap Placed
To bring private PIEs into line with publicly traded companies, the Ministry has instructed the Financial Reporting Council to set an interim ₦25 million cap on their yearly dues.
The minister went on to say, “This action will guarantee regulatory equity, increase investor confidence, and enable a more comprehensive review of the Act, with input from the Ministry of Justice where necessary.”
“The Ministry has now instructed the Financial Reporting Council to set an interim cap of ₦25 million on the annual dues for private sector PIEs, bringing them into line with publicly quoted companies, in order to provide immediate relief.”
Oduwole said, “This action will guarantee regulatory equity, increase investor confidence, and enable a more comprehensive review of the Act, with input from the Ministry of Justice where necessary.”
