In response to growing concerns from the private sector, the Federal Ministry of Industry, Trade and Investment (FMITI) has announced a temporary suspension of controversial provisions in the Financial Reporting Council (FRC) (Amendment) Act 2023.
The development was disclosed in a statement signed by FMITI Minister Dr Jumoke Oduwole, and released on Sunday. The decision follows extensive stakeholder consultations with business leaders and regulatory experts.
At the centre of the dispute were annual dues imposed on large private companies classified as Public Interest Entities (PIEs). The amended Act introduced a dues structure ranging from 0.02% to 0.05% of company turnover, with no upper cap, raising red flags among private sector players.
In contrast, publicly listed companies were mandated to pay a fixed annual fee of N25 million, a disparity that triggered strong opposition from leading business associations. Critics argued that the policy lacked fairness, imposed excessive cost burdens, and could damage investor confidence.
As part of the interim measures, FMITI also announced a cap on annual dues for PIEs to reduce the regulatory burden while a broader review is conducted.
The ministry affirmed its commitment to creating a balanced regulatory environment that supports investment, growth, and economic competitiveness.
