In response to the growing concerns and displeasure regarding the provisions and implementation of yearly dues payable for Public Interest Entities (PIEs) in the revised Financial Reporting Council of Nigeria (FRCN) (Amendment) Act 2023, the Minister, Federal Ministry of Industry, Trade and Investment (FMITI), Dr Jumoke Oduwole, has directed the FRCN to apply an interim cap on yearly dues payable by private sector PIEs at ₦25 million.

This, according to her, aligns with the cap already in place for publicly listed entities under the legislation and creates a stable environment for compliance for affected companies in the short term.

She said it also reflected the Ministry’s commitment to prioritising transparency, investor confidence and regulatory equity while allowing the Ministry of Justice to appropriately determine the longer-term path for seeking legislative amendments on behalf of the Federal Government if required.

Recall that in March this year, the minister convened a stakeholder engagement in response to the agitations raised by the industry stakeholders over the sharp increase in the FRCN levy.

For publicly quoted companies, the maximum payment was ₦1 million yearly but was hiked to ₦25 million. For non-listed companies, which were previously excluded, there is no cap and levies are linked to turnover, irrespective of whether the company is profitable or not.

Manufacturers, under the Manufacturers Association of Nigeria (MAN), through its Director General, Segun Ajayi-Kadir, vehemently resisted the levy, saying that if implemented, it would pose significant challenges to manufacturing companies, most of whom were non-listed entities and were categorised under the current definition of Public Interest Entities (PIEs) of the said Act.

The MAN DG described the levies as “exorbitant,” stressing that non-listed manufacturing firms, predominantly MAN members, had now been reclassified as Public Interest Entities (PIEs), thereby subjecting them to oppressive financial obligations.

Also, the Oil Producers Trade Section (OPTS), Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), expressed reservations through direct consultations and public advocacy. A key issue raised was the reclassification of large private companies as PIEs, which imposed a disproportionate financial burden. Under the amended Act, such companies are required to remit yearly dues, ranging from 0.02 per cent to 0.05 per cent of turnover, with no upper limit, compared to a fixed ₦25 million levy for publicly quoted companies, regardless of their size or market capitalisation.

While the FRCN continues to play a central role in setting and enforcing accounting and financial reporting standards, stakeholders noted that the provisions could lead to unintended, unsustainable increased compliance costs and ultimately negatively affect investor confidence.

In response, on March 26, 2025, the Ministry held a formal public stakeholder consultation to assess the policy implications and ensure alignment with principles of fairness, transparency and economic competitiveness. The consultation resulted in two key actions: a temporary administrative pause on implementation and the establishment of a Technical Working Group to provide deeper analysis.