The Federal Government has suspended the implementation of key provisions in the Financial Reporting Council (Amendment) Act 2023, following backlash from private sector players who raised alarm over increased regulatory burdens.
The decision was announced Monday by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, in a statement detailing the outcome of extensive consultations with major industry groups.
Among those consulted were the Nigeria Employers’ Consultative Association (NECA), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Oil Producers Trade Section (OPTS), all of whom expressed serious concerns about the financial impact of the amended Act.
At the core of the controversy is the reclassification of large private firms as Public Interest Entities (PIEs), a move that obligates them to pay annual dues ranging between 0.02% and 0.05% of their turnover.
Notably, no cap was placed on these payments, unlike publicly listed companies which are subject to a ₦25 million ceiling, regardless of size.
Stakeholders warned that the policy could drive up compliance costs, create regulatory imbalance, and potentially discourage investment.
Dr. Oduwole emphasized that the government’s response is in line with President Bola Ahmed Tinubu’s pro-business posture as outlined in the administration’s 8-Point Agenda.
“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,” she stated.
She explained that following industry pushback, a stakeholder forum was convened on March 26, 2025, which triggered an administrative pause on the policy and the establishment 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.”
According to the minister, President Tinubu was briefed on the findings and subsequently recommended that the pause remain in effect pending a broader legislative review of the amended Act.
“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.
With the interim cap now in place, the government hopes to strike a balance between robust financial oversight and a more investment-friendly regulatory environment, giving private firms temporary relief while long-term amendments are considered.
