The Nigeria Employers’ Consultative Association (NECA) has expressed appreciation to President Bola Ahmed Tinubu for his recent directive to cap the Financial Reporting Council (FRC) levy at ₦25 million for Public Interest Entities (PIEs), including unlisted large private companies. The association described the move as a major step towards easing the financial and regulatory pressure on businesses in the country.
Speaking in Lagos on Monday, the Director General of NECA, Mr. Adewale-Smatt Oyerinde, described the presidential directive as a landmark moment that would go a long way in restoring confidence in Nigeria’s business environment. According to him, the decision addresses the heavy burden created by the open-ended levy requirement included in Section 33 of the FRC (Amendment) Act of 2023.
The law, passed in 2023, had mandated PIEs to pay between 0.02 percent and 0.05 percent of their annual turnover as regulatory dues to the Financial Reporting Council, without setting a maximum limit. This generated backlash from various stakeholders in the private sector, especially from large but unlisted companies, who argued that the law exposed them to high compliance costs and financial risks.
NECA noted that the situation had created anxiety among investors and entrepreneurs, as companies were unsure of how much they would be required to pay each year. By introducing a cap of ₦25 million, the association believes the Tinubu administration has shown commitment to listening to the concerns of the private sector and creating a more stable and predictable regulatory environment.
On Sunday, The source reported that President Tinubu had ordered a temporary suspension of the implementation of the FRC (Amendment) Act 2023. According to a statement by the Federal Ministry of Industry, Trade and Investment, the pause followed months of engagement with stakeholders and a technical review process initiated by the ministry.
Mr. Oyerinde also commended the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, for her efforts in leading an inclusive and consultative process that brought together key players in the private sector. He said NECA, alongside other stakeholders, was part of a technical working group that examined the implications of the amended Act and proposed practical solutions.
He praised the adoption of the group’s recommendations, which included the introduction of a moratorium, the setting of a cap on the levy, and a legislative amendment to give the decision legal backing. Oyerinde said this approach demonstrated evidence-based policy-making and responsive leadership.
NECA highlighted that aligning regulatory treatment for both listed and unlisted companies would enhance fairness across the board. According to the association, this development will also free up capital for companies to reinvest in operations, expand their workforce, and contribute more meaningfully to the growth of the economy.
Oyerinde further noted that the timing of the President’s intervention was strategic, especially as it came shortly after the signing of four new tax laws. These laws are part of a broader effort to simplify Nigeria’s fiscal policies and improve the competitiveness of Micro, Small and Medium Enterprises (MSMEs).
NECA called on the Federal Government to move quickly and send a clean amendment bill to the National Assembly, which will formally introduce the ₦25 million levy cap into law. The association stressed that legal clarity is essential before the 2026 fiscal year to ensure full regulatory certainty for companies operating in Nigeria.
According to Oyerinde, “Regulatory certainty is the lifeblood of investment. The President’s decision sends a strong message that Nigeria listens, adapts, and is open for sustainable business. It signals a positive shift towards a more collaborative and investment-friendly environment.”
The FRC amendment issue had raised major concerns among many business groups, who feared that unchecked regulatory charges would drive up the cost of doing business and scare away investors. The new decision by the Presidency, along with support from the Ministry of Industry, Trade and Investment, is seen as a corrective measure to restore trust and create a level playing field for all stakeholders.
NECA, which represents employers across various sectors of the Nigerian economy, reaffirmed its commitment to supporting government reforms aimed at promoting economic development, job creation, and industrial growth.
