FG Halts Controversial N25m FRCN Levy Indefinitely

The federal government has extended the suspension of the controversial N25 million annual levy mandated by the Financial Reporting Council of Nigeria (FRCN), signalling that the measure will remain on hold indefinitely.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, confirmed that the suspension, initially implemented in response to strong criticism from the business community, will persist pending a broader legislative overhaul of the FRCN (Amendment) Act of 2023.

The move comes after sustained objections from private sector stakeholders who argue that the mandatory flat-rate levy for Public Interest Entities (PIEs) imposes excessive costs on large private enterprises.

Oduwole emphasised that halting the levy would help reduce regulatory uncertainty, ease compliance burdens, and restore investor confidence. She further instructed the FRCN to cap annual dues for private PIEs at N25 million, aligning them with the cap already set for publicly listed firms.

“This interim measure provides clarity and ensures stability for affected firms while legislative amendments are considered,” she said.

In March 2025, the Ministry hosted a multi-stakeholder forum to address concerns around the revised law and reaffirm the government’s commitment to a fair and business-friendly regulatory environment.

“The Tinubu administration remains committed to regulatory fairness and will continue to engage stakeholders in shaping reforms. The Ministry of Justice will assess and pursue any necessary legislative amendments,” Oduwole added.

To facilitate stakeholder feedback, the Ministry formed a Team Working Committee comprising members of NECA, MAN, NACCIMA, and representatives of FRCN. The committee met six times over three weeks and presented a final impact report on Section 33D of the amended Act to the Minister on April 17. This report informed the briefing delivered to President Bola Tinubu on the matter.

Before the government’s intervention, major industry players such as the Oil Producers Trade Section (OPTS) and ALTON had protested the reclassification of large private companies as PIEs under the new law.

The amendment required PIEs to contribute between 0.02% and 0.05% of their turnover without a cap, unlike their publicly listed counterparts, who were subject to a fixed N25 million fee.

The FRCN, established through Act No. 6 of 2011 under the Ministry of Industry, Trade and Investment, is responsible for maintaining accounting and reporting standards across Nigeria.

Although the amendment was passed into law on May 3, 2023, with the intent to strengthen corporate governance, it has been met with concern over its financial impact. Section 33(1)(c) now mandates PIEs and listed companies to pay the greater of N25 million or 0.002% of their market capitalization.

The government insists it will continue to evaluate the levy framework to ensure it enhances Nigeria’s business competitiveness and supports ease of doing business.