A new law required large private entities reclassified as PIEs to pay 0.02 per cent to 0.05 per cent of turnover, without a maximum cap.
The Federal Government says the 60-day administrative pause on the N25 million levy by the Financial Reporting Council of Nigeria (FRCN) will remain in place.
The pause will continue in the medium-to long term, pending a broader legislative review on the contentious annual dues cap.
This decision follows widespread criticism of the FRCN’s N25 million fixed annual levy for Public Interest Entities (PIEs).
Dr Jumoke Oduwole, Minister of Trade, Industry and Investment, confirmed this in a statement on Sunday in Abuja.
She stated that the government would maintain the pause while legislative reforms are considered to address stakeholder concerns.
In March 2025, the Federal Government, through the Minister, established a Team Working Committee for stakeholder engagement.
The committee included representatives from NECA, MAN, NACCIMA, and other private sector bodies, alongside a robust FRCN team.
The group met six times within three weeks, deliberating on the issues causing friction between government and the private sector.
“These sessions produced a report assessing Section 33D of the FRC (Amendment) Act 2023,” said Oduwole.
She said the report was submitted to the Minister on April 17 for further action.
The Ministry briefed President Bola Tinubu on key concerns from private sector stakeholders regarding the levy and related issues.
Before pausing the levy, stakeholders recommended steps based on findings from the consultations and submitted report.
“The pause remains in effect mid-to long term, pending broader legislative reform,” Oduwole reiterated.
She added that in March 2025, the Ministry convened a broader stakeholder meeting on the FRC (Amendment) Act 2023.
The move was in response to widespread concern over annual dues for PIEs under the amended law.
In December 2024, groups like OPTS and ALTON expressed dissatisfaction through direct engagements and public statements.
The main concern was the reclassification of large private firms as PIEs, creating a heavy financial burden.
The new law required private PIEs to pay 0.02 per cent to 0.05 per cent of turnover, without a maximum cap.
This was unlike the fixed N25 million levy applied to publicly listed companies, regardless of size.
“The FRCN remains central in setting and enforcing accounting and reporting standards,” said Oduwole.
She noted stakeholders feared the law could cause unsustainable compliance costs and reduce investor confidence.
Oduwole affirmed that the Tinubu administration remains committed to transparency and a pro-business regulatory framework.
She said the Ministry conducted a public consultation to align policy with fairness and competitiveness.
The consultation resulted in two actions: a temporary pause and creation of a Technical Working Group.
“To provide clarity, I’ve directed FRCN to cap private PIEs’ dues at N25 million,” the Minister said.
This interim cap aligns with the amount already fixed for publicly listed companies under current law.
“The move ensures stability and transparency for affected firms in the short term,” she stated.
It also reflects the Ministry’s goal of boosting investor confidence and regulatory fairness.
“Meanwhile, the Ministry of Justice will consider legislative amendments, if necessary,” Oduwole added.
The News Agency of Nigeria (NAN) reports that the FRCN was established by Act No. 6, 2011.
It operates under the supervision of the Ministry and develops accounting and financial reporting standards in Nigeria.
The amended FRCN Act was signed into law on May 3, 2023, strengthening corporate governance frameworks.
Section 33(1)(c) of the Act mandates quoted companies and PIEs to pay 0.002 per cent of market capitalisation or N25 million.
