The Nigerian government, under President Bola Tinubu, has temporarily suspended the implementation of the contentious Financial Reporting Council (Amendment) Act 2023, offering a reprieve to large private companies designated as Public Interest Entities (PIEs). This decision follows months of sustained advocacy from the private sector and a comprehensive technical review conducted by the Federal Ministry of Industry, Trade and Investment. The crux of the dispute centered on the Act’s imposition of annual dues on PIEs calculated as a percentage of their turnover, ranging from 0.02% to 0.05%, without any upper limit. This contrasted sharply with the fixed N25 million fee levied on publicly listed companies, irrespective of their size or revenue. This disparity sparked concerns about fairness, sustainability, and the potential negative impact on the ease of doing business, particularly for large private companies facing significantly higher fees compared to their publicly listed counterparts.
The controversy surrounding the amended Act began brewing in December 2024 when initial drafts of the policy circulated, prompting immediate pushback from business groups. Key stakeholders, including the Oil Producers Trade Section, the Association of Licensed Telecommunications Operators of Nigeria, and the Nigeria Employers’ Consultative Association, voiced their apprehension about the potential financial burden and the lack of adequate consultation before the reclassification of large private firms as PIEs. These concerns escalated, leading to a high-level stakeholder consultation convened by the Minister of Industry, Trade and Investment, Jumoke Oduwole, in March 2025. The meeting underscored the negative impact the new dues could have on businesses, especially in a challenging economic climate, and resulted in an agreement for a 60-day administrative pause on enforcement alongside the formation of a Technical Working Group to assess the policy’s broader economic ramifications.
The Technical Working Group, formed in response to the stakeholder concerns, diligently met six times over three weeks, culminating in a report submitted to the Ministry in April 2025. This report, along with the ongoing concerns raised by the private sector, ultimately informed the decision to extend the initial 60-day pause. Minister Oduwole, after briefing President Tinubu on the issues and recommendations, secured presidential approval for the suspension of the implementation of the controversial dues. This interim directive aims to stabilize the business environment, demonstrating the government’s commitment to transparency, investor confidence, and a fair regulatory process. While the temporary suspension offers immediate relief, the Ministry of Justice has been tasked with determining the need for a formal legislative amendment to address the fundamental issues raised by the private sector.
In the interim, to ensure a level playing field, Minister Oduwole has directed the Financial Reporting Council to implement a temporary cap on annual dues for private sector PIEs, aligning it with the existing N25 million cap for publicly listed entities. This interim measure allows for a balanced approach while the Ministry of Justice evaluates the long-term legal adjustments necessary to address the concerns raised by the private sector. This decision reflects a commitment to fostering a stable and predictable regulatory landscape, thereby encouraging investment and economic growth. The government’s response underscores its responsiveness to the concerns of the business community and its willingness to adapt policy in the face of legitimate stakeholder concerns.
This policy reversal represents a significant victory for Nigeria’s organized private sector, which had cautioned that excessive regulatory levies could stifle local investment and further weaken the country’s economy. The initial intent of the amended Act was to enhance financial transparency by extending regulatory oversight to large private firms. However, the implementation approach, particularly the disproportionate dues structure, triggered widespread opposition, highlighting the need for a more balanced and consultative approach to regulatory reforms. The government’s willingness to engage with the private sector, conduct a thorough review, and ultimately suspend the implementation demonstrates a commitment to fostering a more conducive business environment.
The pause in the implementation of the Financial Reporting Council (Amendment) Act 2023 allows for a period of reflection and reevaluation. It provides the opportunity for a more collaborative approach to regulatory reform, ensuring that future policies are both effective in achieving their objectives and equitable in their impact on businesses. This incident also highlights the importance of robust stakeholder engagement and the need for thorough impact assessments before implementing potentially disruptive policy changes. The government’s reaffirmation of its commitment to its 8-point agenda, including economic diversification, job creation, and attracting investment, underscores the importance of striking a balance between regulatory oversight and creating a supportive environment for business growth. The ongoing review and potential legislative amendments will be crucial in achieving this delicate balance.
