The federal government says the 60-day administrative pause on the N25 million levy by the Financial Reporting Council of Nigeria will remain in place.
The pause will continue in the mid-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.
Trade minister Jumoke Oduwole 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 a three-week period, deliberating on the issues causing friction between the government and the private sector. The minister disclosed that 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,” Ms 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 such as OPTS and ALTON expressed dissatisfaction through direct engagement 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 a rate of 0.02 per cent to 0.05 per cent of their turnover without a maximum cap. This was unlike the fixed N25 million levy applied to publicly listed companies, regardless of size.
She noted stakeholders feared the law could cause unsustainable compliance costs and reduce investor confidence. Ms 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.
(NAN)
