By: Abba Onyekachukwu, Abuja.
The Federal Ministry of Industry, Trade and Investment (FMITI) has taken proactive measures to address stakeholder concerns regarding the Financial Reporting Council (FRC) (Amendment) Act 2023, according to a press release signed and made available to media houses by Dr Jumoke Oduwole
Honourable Minister, FMITI on Sunday.
In response to growing concerns, the Ministry convened a high-level stakeholder engagement in March 2025 to discuss the provisions and implementation of the Act.
Leading stakeholders, including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), expressed concerns about the reclassification of large private companies as Public Interest Entities (PIEs), which imposed a disproportionate financial burden.
Key issues, according to the release are:
Reclassification of large private companies as PIEs; Annual dues ranging from 0.02% to 0.05% of turnover, with no upper limit and; Potential for increased compliance costs and negative impact on investor confidence
The Ministry held a formal public stakeholder consultation on March 26, 2025, to assess the policy implications and ensure alignment with principles of fairness, transparency, and economic competitiveness. The consultation resulted in two key actions are: A temporary administrative pause on implementation and; The establishment of a Technical Working Group to provide deeper analysis
The Technical Working Group, comprising representatives from various stakeholders, met six times over a three-week period and submitted a report to the Honourable Minister on April 17, 2025. The report highlighted critical concerns raised by organized private sector stakeholders.
The Honourable Minister of Industry, Trade and Investment has directed the Financial Reporting Council (FRC) to apply an interim cap on annual dues payable by private sector PIEs at ₦25 million, aligned with the cap already in place for publicly listed entities. This directive creates a stable environment for compliance for affected companies in the short term.
The Ministry remains committed to prioritizing transparency, investor confidence, and regulatory equity. The administrative pause will be maintained in the mid- to long-term, pending a broader legislative review. The Ministry will work with the Ministry of Justice to determine the longer-term path for seeking legislative amendments, if required.
