Tinubu Halts FRC Act Implementation, Caps Dues for Private Companies at N25 Million

President Bola Tinubu has ordered a temporary halt to the implementation of key provisions of the controversial Financial Reporting Council (FRC) (Amendment) Act 2023, specifically capping the annual dues payable by large private companies, known as Public Interest Entities (PIEs), at N25 million. This decisive action by the President aims to ease the regulatory burden on businesses and foster a more conducive investment climate.

The directive, announced by the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, follows months of intense pressure from the Organised Private Sector (OPS), which had vehemently protested the amended Act’s provisions. The contentious aspects of the 2023 amendment included expanding the definition of PIEs to encompass many large private firms previously exempt, and imposing annual dues based on a percentage (0.02% to 0.05%) of their turnover, crucially, without an upper limit.

Under the new presidential directive, the Financial Reporting Council (FRC) has been instructed to apply an interim cap of N25 million on annual dues for private sector PIEs. This aligns their payments with the existing cap for publicly listed entities, which had also seen their maximum dues hiked from N1 million to N25 million under the amended Act.

Dr. Oduwole clarified that while the government cannot unilaterally suspend a duly enacted law, this “administrative pause” and interim cap allow for a comprehensive review of the framework. “Mr. President has listened to the legitimate concerns of the business community and has directed that implementation of the provision be paused while a comprehensive review is conducted,” she stated.

The initial outcry from business groups like the Manufacturers Association of Nigeria (MAN) and the Nigeria Employers’ Consultative Association (NECA) had highlighted that the unchecked levies would exacerbate financial strain on companies already grappling with high inflation, currency devaluation, and surging operational costs. They warned that such a burden could stifle local investment and further weaken the nation’s fragile economy.

Following an initial “pause” in March 2025, a Technical Working Group comprising representatives from the FRC, the private sector, and the Presidential Tax Reform Committee was established. Their report, submitted in April, provided the basis for the President’s formal approval of the suspension and the interim cap.

This policy shift is widely seen as a significant win for Nigeria’s private sector, demonstrating the Tinubu administration’s commitment to prioritizing transparency, investor confidence, and regulatory equity. While the FRC continues its vital role in setting and enforcing financial reporting standards, the government seeks a balanced approach that supports business growth. The Ministry of Justice will now determine the longer-term path, which may involve further legislative amendments by the National Assembly to permanently address the concerns raised.