FG Puts FRC Amendment Act on Hold, Targets Big Companies With N25 Million Charges

In the Financial Reporting Council (FRC Amendment) Act 2023, controversial provisions have been temporarily put on hold by President Bola Ahmed Tinubu’s administration.
This development was said to come after a lot of criticism from stakeholders in the business sector.
Minister of Industry, Trade, and Investment Dr. Jumoke Oduwole announced the decision in a statement on Monday, stating that it was the result of weeks of high-level discussions with important industry players.

Sector Groups Give Off Warning Signs
Organizations that voiced significant opposition include the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA).

A clause in the revised Act that reclassifies large private companies as Public Interest Entities (PIEs) and requires them to pay 0.02 to 0.05 percent of sales annually, with no ceiling, is at the heart of the debate.

In contrast, publicly traded corporations, regardless of size, are subject to a ₦25 million cap. According to stakeholders, this kind of discrepancy can discourage investment and result in disproportionately high compliance costs.

Industry Concerns Are Addressed by Tinubu
As part of President Bola Tinubu’s 8-Point Agenda, Oduwole explained, the Act was first drafted to support his pro-business views. On the other hand, she stated that the administration has heard the concerns and is acting to resolve them.

The objective of this strategy was to enhance financial transparency as part of President Bola Ahmed Tinubu’s pro-business stance. But in response, we have taken actions that take stakeholder input into account,” she stated.

A Technical Working Group was established to examine the issues during a stakeholder meeting on March 26, 2025, which led to an administrative suspension.

A report is submitted by the working group.
The minister stated that the Technical Working Group comprised representatives from the following organizations: the Securities and Exchange Commission (SEC), the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Association of Licensed Telecoms Operators of Nigeria (ALTON), the Corporate Affairs Commission (CAC), and NECA.

After three weeks of six meetings, the committee turned forth a thorough report on April 17, 2025.

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Oduwole stated that President Tinubu was briefed on the results and suggested that the pause be maintained while legislative review was conducted.

Interim Cap of ₦25m Imposed
The Financial Reporting Council has been instructed by the Ministry to set an interim ₦25 million cap on private PIEs’ yearly dues in order to bring them into line with publicly traded companies.

“A wider review of the Act will be possible with input from the Ministry of Justice where needed, and this action will ensure regulatory equity and increase investor confidence,” the minister continued.

In order to offer prompt assistance, the Ministry has now instructed the Financial Reporting Council to set an interim ₦25 million maximum on private sector PIEs’ yearly dues, bringing them into line with publicly traded corporations.

“A wider review of the Act will be possible with input from the Ministry of Justice where needed, and this action will ensure regulatory equity and increase investor confidence,” Oduwole said.