The Federal Government is to set up a technical committee to review the Financial Reporting Council of Nigeria (FRCN)’s yearly levy on the private sector.
  
This followed the order by the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on the Financial Reporting Council of Nigeria (FRCN) to pause the implementation of its increased yearly duties, pending a robust review with all critical stakeholders, including all legislative arms of government, to allow for a deeper and more inclusive process.
 
Speaking yesterday at the stakeholders’ engagement, which had in attendance, the Permanent Secretary of the ministry, Nura Rimi; FRCN Chief Executive Officer (CEO), Dr Rabiu Olowo; Executive Director, Nigerian Export Promotion Council (NEPC), Nonye Ayeni; and Chairman of Organised Private Sector of Nigeria (OPSN), Dele Oye.
 
Others are President of Manufacturers Association of Nigeria (MAN), Francis Meshioye; Director-General, Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde; Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo and Chairman of the tax committee, Taiwo Oyedele.
 
Oduwole said because the Act was passed into law by the National Assembly, it could only be paused and not suspended and went ahead to recommend a technical working group to thoroughly review the process be constituted.
  
A great outcry had greeted FRCN’S decision to hike the dues payable by businesses. But the organised private sector decried the action, describing it as outrageous, burdensome and capable of stifling businesses. Manufacturers pointed out that they were already paying over 120 taxes and dues yearly; hence, another hike would be dangerous to their survival.
 
Membership would be drawn from the FRCN, organised private sector and the Ministry of Industry, Trade and Investment. The committee is in the next 60 days.
Oduwole announced this at the end of a stakeholders’ forum, yesterday. Meanwhile, the minister said the FRCN had been directed to “pause” the implementation of the yearly levy following complaints by players in private sector.
 
The contentious issue is Section 33(1)(c) of the FRCN Act 2023, which stipulates that quoted Companies/PIES are to pay yearly dues based on 0.002% of their market capitalisation or N25 million.
 
However, MAN, NECA, NACCIMA and OPS pleaded that the implementation of the levy should be suspended, while FRCN opposed their proposal and suggestion. Oduwole said, “They also wrote informally. We have listened because we are a listening government. We asked FRCN to pause the implementation and undertake a review working with key fiscal stakeholders
 
“The recommendation to establish a technical committee to undertake this review today is well received. The organised private sector should nominate representatives, while the FRCN and other key stakeholders, of course, the Federal Ministry of Industry and Investment, are to deliberate on the issues and undertake a thorough analysis using our initiative-based assessment framework and coming to a proposition.”
 
Speaking on behalf of the private sector, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, commended the Federal Government’s efforts, saying: “It is both a privilege and a significant moment to be part of a coordinated effort that will position Nigeria as a leader in intra-African trade. We promise to work as a team to deliver on our mandate.”
 
The Executive Director of Nigerian Export Promotion Council (NEPC), Ms Nonye Ayeni, reaffirmed the committee’s commitment to delivering measurable outcomes, stating: “With focus, dedication and collaboration, we will ensure Nigeria fully leverages the transformative potential of African Continental Free Trade Area (AfCFTA).”