Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, has directed the Financial Reporting Council (FRC) to apply an interim cap on annual dues payable by private sector Public Interest Entities (PIEs) at ₦ 25 million.
Oduwole said the directive aligns with the cap already in place for publicly listed entities under the FRC (Amendment) Act 2023.
Under the Act, PIEs companies are required to remit annual dues ranging from 0.02 per cent to 0.05 per cent of turnover, with no upper limit, compared to a fixed ₦ 25 million levy for publicly quoted companies, regardless of their size or market capitalisation.
Stakeholders, however, noted that these provisions could lead to unintended, unsustainable increases in compliance costs and ultimately negatively affect investor confidence.
In December 2024, leading stakeholders, including those in the oil sector, Telecommunications, and NECA, expressed reservations about the levy, raising concerns about the reclassification of large private companies as PIEs, which they believed would impose a disproportionate financial burden.
Following the complaints, on March 26, 2025, the ministry held a formal public stakeholder consultation to assess the policy implications and ensure alignment with principles of fairness, transparency, and economic competitiveness.
The consultation resulted in two key actions: a temporary administrative pause on implementation of the FRC levy for 60 days, and the establishment of a Technical Working Group to provide deeper analysis.
The working group submitted their report to the minister on April 17, 2025. She subsequently briefed the President on the critical concerns raised by organised private sector stakeholders prior to the implementation of the “administrative pause” and made recommendations based on the submitted report, affirming that the administrative pause will be maintained in the mid- to long-term, pending a broader legislative review.
The minister stated that the directive to the FRC to apply the interim cap on annual dues payable by PIEs at ₦ 25 million would create a stable environment for compliance among affected companies in the short term and reflects the ministry’s commitment to prioritising transparency, investor confidence, and regulatory equity.
A statement from the ministry said this would allow the Ministry of Justice to appropriately determine the longer-term path for seeking legislative amendments on behalf of the Federal Government, if required.
