Abuja: The Federal Government has announced that the 60-day administrative pause on the N25 million levy imposed by the Financial Reporting Council of Nigeria (FRCN) will remain in effect. This decision is intended to allow for a comprehensive legislative review of the annual dues cap, which has been the subject of significant criticism.
According to News Agency of Nigeria, the decision to maintain the pause follows widespread backlash against the FRCN’s fixed annual levy of N25 million for Public Interest Entities (PIEs). Dr. Jumoke Oduwole, the Minister of Trade, Industry and Investment, confirmed this development in a recent statement. The government plans to hold off on enforcing the levy while legislative reforms are considered to address the concerns of stakeholders.
In March 2025, the Federal Government, led by the Minister, formed a Team Working Committee to engage with stakeholders. The committee, which included representatives from NECA, MAN, NACCIMA, and other private sector organizations, along with a robust FRCN team, met six times over three weeks to discuss issues causing friction between the government and the private sector. These meetings resulted in a report assessing Section 33D of the FRC (Amendment) Act 2023, which was submitted to the Minister on April 17 for further action.
Stakeholders had advised the government to take specific steps based on findings from the consultations and the submitted report before pausing the levy. The Ministry also briefed President Bola Tinubu on key concerns from private sector stakeholders regarding the levy and related issues.
The pause, which remains in effect mid-to long term, is pending broader legislative reform. In a move to respond to widespread concern over annual dues for PIEs under the amended law, the Ministry convened a broader stakeholder meeting on the FRC (Amendment) Act 2023 in March 2025.
In December 2024, groups such as OPTS and ALTON expressed dissatisfaction through direct engagements and public statements. Their main concern was the reclassification of large private firms as PIEs, a change that imposed a heavy financial burden on these companies. The new law required private PIEs to pay between 0.02 per cent and 0.05 per cent of turnover, without a maximum cap, unlike the fixed N25 million levy applied to publicly listed companies.
Dr. Oduwole pointed out that stakeholders feared the law could lead to unsustainable compliance costs and reduce investor confidence. She reaffirmed the Tinubu administration’s commitment to transparency and a pro-business regulatory framework. The Ministry conducted a public consultation to ensure policy alignment with fairness and competitiveness, resulting in a temporary pause and the establishment of a Technical Working Group.
To provide clarity, Dr. Oduwole directed the FRCN to cap private PIEs’ dues at N25 million, aligning with the amount already fixed for publicly listed companies under current law. This interim cap is intended to ensure stability and transparency for affected firms in the short term and reflects the Ministry’s goal of boosting investor confidence and regulatory fairness. Meanwhile, the Ministry of Justice will consider legislative amendments, if necessary.
The News Agency of Nigeria reports that the FRCN was established by Act No. 6, 2011, and operates under the supervision of the Ministry. It is responsible for developing accounting and financial reporting standards in Nigeria. The amended FRCN Act, signed into law on May 3, 2023, aims to strengthen corporate governance frameworks. Section 33(1)(c) of the Act mandates quoted companies and PIEs to pay 0.002 per cent of market capitalization or N25 million.
