FG Slams ₦25 Million Levy On Big Companies, Suspends Controversial FRC Act

The administration of President Bola Ahmed Tinubu has temporarily halted the enforcement of controversial provisions in the Financial Reporting Council (FRC) Amendment Act of 2023, following strong criticism from private sector stakeholders.....KINDLY READ THE FULL STORY HERE▶

This was made known on Monday through a statement by the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, who said the suspension came after intensive consultations with key industry players.

Industry Pushback Sparks Review

Several influential business groups, including the Nigeria Employers’ Consultative Association (NECA), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Oil Producers Trade Section (OPTS), strongly opposed the revised law.

A major source of concern was a clause reclassifying large private firms as Public Interest Entities (PIEs). This reclassification would have subjected them to annual regulatory dues of 0.02 to 0.05 per cent of their turnover, without any ceiling—unlike publicly listed companies, whose dues are capped at ₦25 million. Critics argued the change could escalate compliance costs and deter investment.

Tinubu Government Heeds Concerns

Oduwole emphasized that the original intent of the amendment was to enhance financial transparency in line with President Tinubu’s pro-business 8-Point Agenda. However, she noted the government had listened to industry feedback and was now taking corrective action.

“As part of President Tinubu’s business-friendly reforms, this policy was intended to promote transparency. However, we’ve adjusted based on stakeholder input,” she said.

Stakeholder Meeting and Technical Review

A stakeholder forum held on March 26, 2025, led to an administrative suspension of the Act’s implementation and the formation of a Technical Working Group to thoroughly examine the issues.

This group, composed of representatives from NECA, MAN, ALTON, NACCIMA, CAC, SEC, and others, met six times over three weeks. They submitted a detailed report on April 17, 2025, which led to President Tinubu being briefed and endorsing a continued pause pending further legislative revisions.

₦25 Million Cap Introduced

To ease immediate tensions, the Ministry directed the FRC to impose a ₦25 million interim cap on annual dues for private PIEs—bringing them in line with publicly traded firms.

“This step will ensure regulatory fairness, reinforce investor confidence, and pave the way for a broader review of the law, involving the Ministry of Justice as needed,” Oduwole added.