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FG Cracks Down on ‘Big’ Companies, Demands ₦25m as FRC Act Faces Sudden Suspension!
President Bola Ahmed Tinubu’s administration has temporarily halted the enforcement of key sections of the controversial Financial Reporting Council (FRC Amendment) Act 2023, following mounting criticism from private sector stakeholders.....KINDLY READ THE FULL STORY HERE▶
The suspension was confirmed on Monday by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, who explained that the decision came after weeks of intensive consultations with major industry players.
Industry Groups Sound the Alarm
Prominent 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) — voiced strong opposition to aspects of the amended law.
At the heart of the backlash was a provision that reclassifies large private companies as Public Interest Entities (PIEs), thereby subjecting them to annual regulatory dues between 0.02% and 0.05% of turnover — without any maximum limit. In contrast, listed companies would only pay a flat ₦25 million fee, regardless of their size. Critics warned that this unequal structure would raise compliance costs and discourage private investment.
Tinubu Moves to Reassure Investors
Minister Oduwole noted that while the amendment was initially part of Tinubu’s business-friendly reforms under his 8-Point Agenda, the government has acknowledged stakeholder concerns and is responding accordingly.
“In line with President Tinubu’s commitment to a pro-business environment, the law was meant to improve financial transparency. However, in light of widespread concerns, we’ve taken steps to pause and reassess,” she said.
A stakeholder meeting held on March 26, 2025, led to the administrative suspension of the provisions and the formation of a Technical Working Group to reassess the matter.
Technical Review Underway
The Technical Working Group comprised representatives from NECA, the Manufacturers Association of Nigeria (MAN), ALTON, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Corporate Affairs Commission (CAC), and the Securities and Exchange Commission (SEC), among others.
The group held six sessions over a three-week period and submitted its findings on April 17, 2025, offering detailed recommendations for a more balanced approach.
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