The Organized Private Sector of Nigeria (OPSN) lauded the Federal Government’s decision to suspend the implementation of the Financial Reporting Council (Amendment) Act 2023, viewing it as a crucial step towards fostering a more conducive business environment. This Act, which introduced new annual dues for large private companies designated as public interest entities, had sparked considerable controversy and apprehension within the business community. The OPSN, an umbrella body representing various business associations including the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), National Association of Small-Scale Industrialists (NASSI), and the Nigerian Association of Small and Medium Enterprises (NASME), had consistently voiced concerns about the potential negative impact of the Act on business growth and economic development. The suspension, they argued, provides a much-needed opportunity to reassess the framework and ensure its alignment with the realities of the Nigerian business landscape.
The core of the OPSN’s concern revolved around the mandatory levies and reporting obligations stipulated by the amended Act. These were deemed excessively burdensome, particularly for Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of the Nigerian economy. The additional financial strain imposed by these requirements, they argued, would hinder growth, stifle innovation, and potentially lead to job losses. By suspending the implementation, the government acknowledged these concerns and demonstrated a commitment to fostering a more enabling environment for businesses to thrive. This move signals a willingness to engage in constructive dialogue with the private sector and to tailor regulatory frameworks to better support economic growth and development.
The OPSN emphasized the importance of collaboration between regulators and private sector operators in shaping economic policies. They advocated for a more participatory approach to policy formulation, ensuring that regulations are not only effective but also practical and sensitive to the needs of businesses. This collaborative approach, they believe, would lead to the development of policies that promote economic growth without hindering innovation or entrepreneurship. The OPSN reiterated its commitment to working closely with the government and relevant agencies to advocate for policies that support ease of doing business, job creation, and enhanced national productivity.
The suspension of the Act is seen as a positive step towards creating a more balanced and sustainable regulatory environment. It offers an opportunity to revisit the provisions of the Act and ensure that they are both robust and pragmatic. The OPSN stressed the importance of maintaining a regulatory framework that fosters transparency and accountability while also minimizing the compliance burden on businesses. They believe that a well-designed regulatory framework can play a critical role in promoting investor confidence and attracting both domestic and foreign investment.
The OPSN’s commendation of President Tinubu’s decision reflects a shared vision for a thriving Nigerian economy. They view the suspension as a testament to the government’s commitment to fostering a business-friendly environment. This move aligns with the government’s broader agenda of improving the ease of doing business and creating an environment conducive to economic growth and job creation. The OPSN expressed optimism that the suspension would pave the way for a more collaborative and productive relationship between the government and the private sector.
Moving forward, the OPSN called for sustained dialogue between regulatory bodies and the private sector. This collaborative approach, they believe, is essential for developing regulatory policies that are both effective and supportive of economic growth. The OPSN reiterated its dedication to working alongside the government in its pursuit of economic transformation and expressed confidence that a more balanced regulatory framework would contribute significantly to the realization of this goal. The suspension of the Act, they believe, marks a significant step in the right direction and provides a platform for building a stronger and more vibrant Nigerian economy.
