In a significant victory for Nigeria’s private sector, President Bola Tinubu has ordered a temporary suspension of the contentious Financial Reporting Council (Amendment) Act 2023. This Act, which mandated substantial annual dues from large private companies designated as Public Interest Entities (PIEs), sparked widespread criticism and concern from business groups who argued that the financial burden was disproportionate and threatened economic stability. The Act stipulated that PIEs remit between 0.02% and 0.05% of their annual turnover as regulatory fees, a figure with no upper limit, while publicly listed companies, regardless of size or revenue, paid a fixed fee of N25 million. This disparity ignited debates about fairness, sustainability, and the ease of doing business in Nigeria.
The suspension follows months of sustained pressure from key industry players, including the Oil Producers Trade Section, the Association of Licensed Telecommunications Operators of Nigeria, and the Nigeria Employers’ Consultative Association. These organizations voiced strong opposition to the new dues, highlighting their potential negative impact on businesses already grappling with a challenging economic landscape. Heeding these concerns, the Minister of Industry, Trade and Investment, Jumoke Oduwole, convened a high-level stakeholder consultation in March 2025. This meeting resulted in an initial 60-day administrative pause on enforcement and the formation of a Technical Working Group tasked with evaluating the Act’s broader economic implications.
The Technical Working Group, after several weeks of intensive analysis, submitted its report to the ministry in April 2025. However, rather than immediately lifting the pause, the President, after reviewing the report and receiving a detailed briefing from the minister, opted to formally suspend the implementation of the dues. This decision, according to Minister Oduwole, aims to foster stability and underscore the administration’s commitment to transparency, investor confidence, and equitable regulatory practices. Furthermore, it demonstrates a responsiveness to the concerns of the business community and acknowledges the need for a comprehensive review of the policy.
As an interim measure, Minister Oduwole has directed the Financial Reporting Council to implement a cap of N25 million on annual dues for private sector PIEs, mirroring the existing cap for publicly listed entities. This interim cap will remain in effect while the Ministry of Justice determines whether a formal legislative amendment is required. This approach provides immediate relief to affected companies and ensures a level playing field during the review process. The ministry’s actions reflect a dedication to balancing regulatory oversight with the needs of businesses, particularly in a challenging economic climate.
The President’s decision marks a significant win for Nigeria’s organized private sector, which had cautioned against unchecked regulatory levies, warning that they could deter local investment and further weaken the nation’s economy. Critics of the amended Act had argued that the reclassification of large private companies as PIEs without adequate consultation disrupted established corporate governance structures and increased operational costs at a time when businesses were already facing economic headwinds. The initial drafts of the policy, circulated in December 2024, had sparked immediate concerns, highlighting the need for a more considered and consultative approach.
The Federal Government, while acknowledging the need for enhanced financial transparency – the original impetus behind the amended Act – has reaffirmed its commitment to its 8-Point Agenda, which prioritizes economic diversification, job creation, and attracting investment. The pause in the implementation of the Act allows for a more balanced approach that addresses both the need for regulatory oversight and the concerns of the private sector. Moving forward, the Financial Reporting Council will adhere to the interim cap on dues while awaiting further guidance from the Ministry of Justice and the National Assembly. This collaborative approach seeks to create a regulatory framework that fosters both transparency and economic growth.
