Fed Govt Suspends FRCN Annual Dues for Review
By Patience Ikpeme
The Federal Government has placed a temporary halt on the annual dues imposed on public interest enterprises by the Financial Reporting Council of Nigeria (FRCN).
Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, announced the government’s decision during a stakeholder forum in Abuja.
Members of the organized private sector, including the Nigeria Employers’ Consultative Association and the Manufacturers Association of Nigeria, had consistently voiced concerns about the potential financial impact of the Financial Reporting Council (Amendment) Act 2023.
Oduwole stated that the suspension allows for a review of the areas of concern. “The government has decided to direct the Financial Reporting Council to pause in the implementation of the new annual dues. You know that I am a lawyer, and a suspension request by the organised private sector would be in contravention of legislation duly passed by the National Assembly. A pause is an administrative process simply to review, in line with what we discussed today,” Oduwole explained.
The 2023 FRC Amendment Act imposes cumulative annual charges on non-listed entities and includes a provision for a 10% penalty on unpaid dues for each month of default, compounding until full payment.
Stakeholders at the forum discussed how these measures could negatively affect businesses, particularly in Nigeria’s current economic climate.
Dr. Oduwole assured stakeholders that the suspension would not exceed 60 days, reflecting the government’s responsiveness.
“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at the most, 60 days is in my estimate. We are going to set up a technical working group comprised of the FRC and the organised private sector who have formally written in, and this will be reviewed,” she said.
The discussions focused on Section 33(1)(c) of the FRCN Act, which mandates quoted companies to pay annual dues based on 0.002% of their market capitalization or N25 million, whichever is lower. Stakeholders expressed worries about the potential impact on companies’ financial stability.
