FRC Amendment Act 2023: FG Suspends Implementation
The Federal Government of Nigeria has suspended the implementation of the Financial Reporting Council (FRC) Amendment Act 2023, following extensive consultations with major industry bodies. Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, disclosed that the decision was made after stakeholders raised concerns about the Act’s potential impact on the private sector.
The controversy surrounding the Act stems from its reclassification of large private companies as Public Interest Entities (PIEs), subjecting them to annual dues ranging from 0.02% to 0.05% of their turnover without a cap. In contrast, publicly listed companies have a fixed dues ceiling of ₦25 million. Stakeholders warned that the new financial obligations could escalate compliance costs and discourage investment in Nigeria’s private sector.
Dr. Oduwole affirmed that the Tinubu administration remains committed to its pro-business 8-Point Agenda. A stakeholder meeting was held on March 26, 2025, leading to an administrative pause and the formation of a Technical Working Group. The group submitted its recommendations on April 17, 2025, and following a review of the report, President Bola Tinubu approved the continuation of the policy pause pending legislative amendments.
To provide immediate relief, the Ministry has directed the Financial Reporting Council to impose an interim cap of ₦25 million on annual dues for private sector PIEs, bringing them in line with publicly quoted companies. Dr. Oduwole reiterated the government’s readiness to collaborate with the private sector in addressing regulatory issues and ensuring Nigeria remains an attractive destination for investment. The suspension of the Act’s implementation is expected to ease the burden on private sector companies and promote a more favorable business environment in Nigeria. #FRC Amendment Act 2023: FG Suspends Implementation#
