President Bola Ahmed Tinubu has ordered a temporary suspension of the implementation of the controversial Financial Reporting Council (Amendment) Act 2023, which introduced new annual regulatory dues on large private companies classified as Public Interest Entities (PIEs).
This decision was disclosed by the Federal Ministry of Industry, Trade and Investment in a statement on Sunday. The ministry explained that the move comes after sustained pressure from key private sector stakeholders and a technical review process initiated in response to their concerns.
The amended law, passed in 2023, required private PIEs to remit between 0.02% and 0.05% of their annual turnover as regulatory dues. However, there was no upper limit placed on the payable amount. Meanwhile, publicly listed firms were to pay a flat annual fee of ₦25 million, regardless of their revenue size.
This disparity triggered widespread criticism from private sector organisations, who described the Act as inequitable and harmful to business growth. Several business associations, including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), had voiced strong objections.
To address these concerns, Minister of Industry, Trade and Investment, Jumoke Oduwole, convened a high-level stakeholder meeting on March 26, 2025, where participants warned that the amended Act posed a threat to the ease of doing business in Nigeria, especially for companies already struggling with operational costs in a fragile economy.
Following the meeting, the ministry took two key steps: first, an administrative pause on enforcement of the new dues; and second, the formation of a Technical Working Group to assess the wider economic implications of the policy. This group met six times in three weeks and submitted a report to the ministry on April 17, 2025.
Three months after the initial pause, President Tinubu formally approved the continued suspension of the dues. According to Oduwole, the President’s directive was based on a thorough review of the issues raised by industry stakeholders and the recommendations of the technical committee.
In the interim, the Minister announced a temporary cap of ₦25 million on annual dues payable by private PIEs—the same as the rate for public companies. This cap will remain in place while the Ministry of Justice determines whether a formal amendment to the law is necessary.
“This directive creates a stable environment for compliance for affected companies in the short term and reflects the administration’s commitment to transparency, investor confidence, and regulatory equity,” Oduwole said.
She added that the Federal Government, under President Tinubu, remains committed to its 8-Point Agenda, which focuses on economic diversification, job creation, and improved investment climate.
The amended Act had faced serious backlash since December 2024, when early drafts of the policy were shared with stakeholders. Many companies said the classification of private firms as PIEs was done without adequate industry consultation, and could lead to major compliance burdens.
Oduwole stressed that while the goal of the Financial Reporting Council (FRC) to strengthen financial transparency is important, regulations must also consider the current economic realities facing Nigerian businesses.
“This administration is responsive to the concerns of the business community,” she said. “President Tinubu has directed that the implementation of the provision be paused while a comprehensive review is conducted.”
The policy reversal is seen as a win for Nigeria’s organised private sector, which had warned that unchecked regulatory levies could discourage local investment and stifle business expansion. Business leaders noted that without limits, the percentage-based dues could translate into hundreds of millions of naira in annual fees for large companies.
With the pause now in effect, the FRC has been directed to apply the interim cap and await further directives from the Ministry of Justice and National Assembly, which may initiate legislative amendments in the future.
The Financial Reporting Council (Amendment) Act 2023 was originally introduced to expand the oversight powers of the Council and enforce financial reporting discipline across both listed and large private companies. However, the implementation now hangs in the balance, pending further government review.
