Following the outcry that greeted the Financial Reporting Council of Nigeria (FRCN) ‘s decision to impose dues on private entities as contained in its amended act, the Presidential Enabling Business Environment Council (PEBEC) has called for calm as it addresses the various concerns.

The FRCN Amendment Act 2023 expanded the definition of public interest entities (PIEs) to include various categories of private companies, concession and privatised entities and imposed annual dues and levies, ranging from a minimum of N5,000 to N1 million depending on the entity’s annual turnover.

This did not go down well with operators, who cried out that the imposition amounts to double taxation and is unjustified, not to mention capable of stifling businesses.

One of the challenges businesses in Nigeria face is multiple taxation, which the proposed tax reform bills at the National Assembly are meant to address.

Before the amendment of the FRC Act, the Council’s regulatory oversight did not extend to all private companies as it was limited to specific entities and transactions related to public funds and large public work contracts.

Director General of Nigeria Employers Consultative Association (NECA), Adewale-Smatt Oyerinde, condemned the imposition of what he described as “outrageous” annual dues on private and non-quoted companies. He warned that the move could cripple businesses and stifle economic growth.

He said that at a time when the government is talking of ease of doing business and begging investors to come to the country, it is contradictory to subject private non-quoted companies to multiple taxes such as the FRCN’s annual dues.

Reacting to concerns expressed by the affected entities, the Director General of PEBEC, Zahrah Audu, said the council was working out modalities to address the issues raised by stakeholders.

She noted that recent amendments to the FRC Act have expanded the definition of PIEs to include various categories of private companies, concession entities and privatised entities.

“These changes aim to enhance transparency and accountability in financial reporting and strengthen corporate governance in Nigeria. However, issues have arisen regarding the payment of annual dues and fees by PIEs. The FRCN has introduced new payment dates and penalties for non-compliance, which may affect various stakeholders,” she said.

She said that to address the concerns surrounding the FRC Act’s recent amendment, the council is holding a series of stakeholder engagements.

These sessions, she said, would foster open discussions and collaborative problem-solving among key stakeholders.

She called on all parties to remain calm as PEBEC would continue to emulate best practices, ensuring that Nigeria remains competitive and an attractive destination for businesses and investors.