The Federal Government has announced that the suspension of the contentious N25 million annual levy imposed by the Financial Reporting Council of Nigeria (FRCN) will remain in place for the foreseeable future.
According to the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, the administrative pause initially introduced in response to public outcry will continue pending a broader legislative review of the FRCN (Amendment) Act, 2023.
This decision follows intense backlash from private sector stakeholders over the mandatory fixed levy for Public Interest Entities (PIEs), which they argue places an undue financial burden on large private firms.
Interim relief and next steps
Oduwole explained that the pause on the levy aims to prevent regulatory uncertainty, ease compliance costs, and rebuild investor confidence. As an interim relief, she directed the FRCN to cap the annual dues for private PIEs at N25 million—matching the amount set for publicly listed companies.
“This interim measure provides clarity and ensures stability for affected firms while legislative amendments are considered,” she said.
The Ministry also convened a broader stakeholder forum in March 2025 to address widespread concern over the amended Act and reaffirmed its commitment to a transparent, pro-business regulatory framework.
“The Tinubu administration remains committed to regulatory fairness and will continue to engage stakeholders in shaping reforms. The Ministry of Justice will assess and pursue any necessary legislative amendments,” Oduwole added.
Background
In March 2025, the Ministry established a Team Working Committee to facilitate stakeholder consultations on the levy. The committee included representatives from key industry groups such as the Nigeria Employers’ Consultative Association (NECA), the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and a team from the FRCN.
Over three weeks, the committee held six meetings, culminating in a report assessing the impact of Section 33D of the amended Act.
- The report was submitted to the Minister on April 17 and formed the basis for briefing President Bola Tinubu on stakeholder concerns.
- Before the pause was enacted, various groups, including the Oil Producers Trade Section (OPTS) and the Association of Licensed Telecom Operators of Nigeria (ALTON), had raised objections to the reclassification of large private firms as PIEs.
- The amended law had required PIEs to pay between 0.02% and 0.05% of their annual turnover without a cap, unlike publicly listed companies, which were required to pay a fixed N25 million.
About the FRCN and the amended Act
The Financial Reporting Council of Nigeria was established under the FRC Act No. 6 of 2011 and operates under the Ministry of Industry, Trade and Investment. It is responsible for setting accounting and financial reporting standards in Nigeria.
The amended FRCN Act, signed into law on May 3, 2023, aimed to enhance corporate governance but has since faced criticism for its financial implications on the private sector. Section 33(1)(c) of the law mandates PIEs and publicly quoted companies to pay either 0.002% of their market capitalisation or N25 million annually.
The government says it will continue to evaluate the framework to ensure it aligns with national competitiveness goals and the ease of doing business in Nigeria.
