FG announces 60-day pause on FRCN levy implementation amid private sector concerns

The Federal Government has announced a temporary 60-day pause on the implementation of the Financial Reporting Council of Nigeria (FRCN) levy to allow for a comprehensive review following concerns raised by the private sector.

Jumoke Oduwole, Minister of Industry, Trade, and Investment, stated this during a ministerial engagement in Abuja, where she met with key stakeholders, including representatives from the organized private sector (OPS) and the Financial Reporting Council.

Oduwole clarified that while a full suspension of the levy would contravene an existing law, an administrative pause was necessary to review the concerns raised.

“As some of you know, I’m a lawyer, so a suspension would be a contravention of a legislation duly passed by the National Assembly. A pause is an administrative process to review in line with what we’ve discussed today. The private sector has asked for a range of two to three months to an indefinite suspension, but we’re not going to do that. At the most, this will last 60 days,” she said

To facilitate the review, the minister said that the government will set up a technical working group comprising representatives from the FRCN, the organized private sector, and the Presidential Tax Policy Reform Committee. Their task will be to conduct an empirical analysis and recommend a fair and balanced approach.

Oduwole reassured stakeholders that President Bola Ahmed Tinubu’s administration is committed to fostering a business-friendly environment.

“We want the private sector to be comfortable, and we want the economy to thrive, We have reviewed global best practices, and we will develop a system that is best suited for Nigeria,”

She confirmed that once the review is completed, the findings will be escalated to the National Assembly for further action.

On his part, Rabiu Olowo, Executive Secretary and CEO of the Financial Reporting Council (FRC), has assured stakeholders that recent regulatory changes under the 2023 FRCN Amendment Act are designed to strengthen financial oversight, enhance investor confidence, and promote trade and investment in the country.

Olowo provided insights into the objectives and impact of the amended act. He emphasized that the reforms are aimed at improving financial reporting standards, ensuring transparency, and reducing risks associated with corporate governance failures.

According to him, the amendment was necessary to address key regulatory gaps, including conflicts of interest, board size reduction, and the clear definition of Public Interest Entities (PIEs). He highlighted that a well-regulated financial environment is crucial for attracting local and foreign investments.

“The FRCN is not just another regulator; we are here to ensure a strong, fair, and independent oversight of financial reporting, Our ultimate goal is to protect investors, strengthen businesses, and build confidence in Nigeria’s financial system,” he stated

Also speaking, Dele Kelvin Oye, leader of the organized private sector, criticized the timing and rationale behind the levy, arguing that businesses were already struggling under economic pressure.

“This law was passed at the last minute. The FRCN has not justified the additional funds they require, nor have they shown an increase in work or employment. Implementing this levy as it stands will drive more businesses out of Nigeria,” Oye warned.

He further urged the government to consider a three-month suspension to allow for a proper resolution, emphasizing the need for a regulatory framework that supports business growth rather than stifling it with excessive taxation.