The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, has convened a stakeholders’ forum to address concerns surrounding the Financial Reporting Council of Nigeria (FRCN) annual levy.

Daily Trust reports that industry stakeholders, especially the Manufacturers Association of Nigeria had cried out over the FRCN Act, which imposes cumulative annual charges on non-listed entities.

The Act imposes a 10 percent penalty on unpaid dues for every month of default, accumulating until full payment.

The Director General of MAN, Segun Ajayi-Kadir, had in a strongly-worded statement protested and warned against what he called “astronomical” annual charges on private companies by the FRCN.

He expressed concerns over the implementation of certain provisions of the FRCN (Amendment) Act, particularly those relating to charges on non-listed entities, like most members of MAN.

According to Ajayi-Kadir, the provisions, as currently implemented, pose significant challenges to the manufacturing companies, majority of whom are non-listed entities and are categorised under current definition of Public Interest Entities (PIEs) of the said Act.

“For instance, a new section 33 introduced under FRCN Amendment Act, 2023 mandates annual charges for non-listed entities, calculated as a percentage of their annual turnover (maximum being 0.05% of the annual turnover for companies with turnover of more than N10 billion).

 

 

 

“For publicly quoted companies, the maximum payment earlier was N1 million per annum. Now, that amount is hiked to N25 million! Quite incredibly, for non-listed companies, who were previously excluded, there is no cap and it is linked to the turnover, irrespective if the company is profitable or not.

 

 

 

“The FRCN Amendment Act, 2023, Section 33 Clause 3, imposes heavy penalties on a person or an entity failing to pay annual dues with 10% of the annual due for every month of default cumulatively until payment, liable to sanctions prescribed by the Council for any default of its agents, officer or personnel engaged in the financial reporting process for failure to comply with the provision of the act and in case of chief executive officer to a penalty as may be prescribed by the Council, or on conviction to imprisonment for a term not exceeding 6 months.

 

 

 

“The strict penalties and possible conviction to imprisonment could be construed as having the nature of a criminal law. Generally, non-payment of fees/dues typically results in other penalties or fines and imprisonment provisions are applicable only in cases where non-payment is seen as an act of defiance or fraud,” the statement reads.

 

 

 

On Friday, the Presidential Enabling Business Environment Council promised to look into the concerns raised by MAN and other stakeholders.

 

 

 

A statement made available to Daily Trust on Tuesday by the Ministry of Industry, Trade and Investment, disclosed that the federal government is engaging stakeholders today (Wednesday) on the rising concerns.

 

 

 

“The forum, scheduled to hold on Wednesday, March 26, 2025, in Abuja and streamed online, will serve as a platform for open dialogue and a review of the current framework.

 

 

 

“In line with President Bola Tinubu’s 8-Point Agenda, the administration remains committed to being a listening government. This convening reflects the federal government’s broader commitment to transparency, fairness and alignment with international best practices, with a strong focus on improving Nigeria’s business environment,” the statement said.

 

 

 

According to the statement, at the centre of the discussions is Section 33(1)(c) of the FRCN Act, which stipulates that quoted companies are to pay annual dues based on 0.002% of their market capitalisation or ₦25 million, whichever is lower.

 

 

 

In light of the issues raised, the statement quoted Oduwole to have reaffirmed the ministry’s dedication to stakeholder collaboration.

 

 

 

“The ministry remains committed to working closely with stakeholders. Constructive dialogue around regulatory policies is essential to ensure that all businesses — large and small — are supported in a fair and sustainable way. This is critical to enhancing business competitiveness and aligning with Nigeria’s broader economic transformation agenda,” the minister quoted as saying.