The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, has convened a stakeholders’ meeting to address mounting concerns over the Financial Reporting Council of Nigeria (FRCN) annual levy, which has sparked outrage among business groups, particularly the Manufacturers Association of Nigeria (MAN).
The move comes in response to strong opposition from industry leaders over what they describe as excessive financial burdens imposed by the FRCN (Amendment) Act, 2023. MAN’s Director General, Segun Ajayi-Kadir, recently issued a strongly worded statement condemning what he termed the “astronomical” charges on private companies, warning that the levies pose significant risks to the manufacturing sector.
Concerns Over Implementation of the FRCN Act
The FRCN (Amendment) Act, 2023 introduces new provisions that require non-listed entities, including many manufacturing firms, to pay annual levies calculated as a percentage of their turnover. Under Section 33 of the amended law, companies with an annual turnover exceeding ₦10 billion must pay a levy of up to 0.05% of their earnings.
Previously, publicly listed companies were capped at ₦1 million per year in regulatory fees, but under the new framework, the amount has surged to ₦25 million annually. For non-listed entities, which were previously exempt, the charges are now tied to turnover, regardless of whether the company is profitable or not.
Adding to the concerns, the Act imposes strict penalties on defaulters. Companies that fail to comply face a 10% penalty on outstanding dues for every month of non-payment, accumulating indefinitely until the full sum is settled. Furthermore, the law includes provisions for imprisonment of up to six months for chief executives found in violation, a clause that some industry experts argue gives the levy a quasi-criminal nature.
Federal Government to Review Stakeholder Concerns
In response to the growing outcry, the federal government has assured businesses that their concerns will be addressed. The Ministry of Industry, Trade and Investment, in a statement issued on Tuesday, confirmed that a stakeholders’ engagement would take place today, Wednesday, March 26, 2025, in Abuja. The forum will also be streamed online to allow broader participation.
The ministry emphasized that the meeting aligns with President Bola Tinubu’s 8-Point Agenda, which prioritizes creating a business-friendly environment in Nigeria. “This engagement reflects the government’s commitment to transparency, fairness, and adherence to international best practices,” the statement read.
At the heart of the discussions is Section 33(1)(c) of the FRCN Act, which mandates that quoted companies pay annual dues based on 0.002% of their market capitalization or ₦25 million, whichever is lower. Stakeholders are expected to deliberate on the impact of these provisions on businesses, particularly small and medium enterprises.
Minister Reaffirms Commitment to Business Growth
Dr. Oduwole has reiterated the ministry’s resolve to foster dialogue and collaboration with the private sector. According to the statement, she assured stakeholders that their concerns would be taken into account in shaping regulatory policies.
“The ministry remains committed to working closely with all stakeholders. Constructive dialogue around regulatory policies is essential to ensuring that businesses—both large and small—are supported in a fair and sustainable manner. This is critical to enhancing Nigeria’s business competitiveness and aligning with the broader economic transformation agenda,” the minister stated.
The outcome of today’s meeting is expected to shape the federal government’s next steps in addressing the controversy surrounding the FRCN levy. KIIN360 will continue to monitor developments and provide updates as they unfold.
