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JUST IN: FG Suspends Implementation Of FRC’s Annual Dues

FG suspends FRC’s annual dues after business sector backlash.
Industry leaders oppose 10% monthly penalty on unpaid charges.
Suspension to last 60 days, with a technical working group set up.

The Federal Government has announced a temporary suspension of the implementation of annual dues imposed on public interest enterprises by the Financial Reporting Council (FRC), following widespread concerns from industry stakeholders over the financial burden of the new charges.

Minister of Industry, Trade, and Investment, Jumoke Oduwole, made the announcement on Wednesday during a Ministerial Consultative Meeting on the Financial Reporting Council’s annual dues in Abuja.

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EKO HOT BLOG reports that the meeting was convened in response to numerous official complaints from key industry players, including the Nigerian Employers’ Consultative Association (NECA) and the Manufacturers Association of Nigeria (MAN), who have raised objections to the Financial Reporting Council (Amendment) Act 2023.

The controversial Act mandates cumulative annual charges on non-listed entities and includes a provision imposing a 10% penalty on unpaid dues for every month of default. Stakeholders argue that the measure is overly punitive and could place additional financial strain on businesses, particularly in the current economic climate.

During the meeting, representatives from NECA, MAN, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), the Oil Producers Trade Section (OPTS), and the Association of Licensed Telecommunications Operators of Nigeria (ALTON) voiced strong opposition to the policy. They warned that the dues could stifle business operations and discourage investment.

In response, Oduwole confirmed that the government has directed the FRC to temporarily halt the implementation of the charges.

“The government has decided to direct the Financial Reporting Council to pause the implementation of the new annual dues. While an outright suspension would contradict legislation passed by the National Assembly, a pause is an administrative process to review the situation based on today’s discussions,” the minister stated.

She further clarified that the suspension would not exceed 60 days.

“The private sector has requested a suspension ranging from three months to indefinite postponement. We are a listening administration, but we will not extend beyond 60 days. A technical working group comprising the FRC and key private sector representatives will be formed to reassess the policy,” Oduwole added.

Implementation Of FRC’s Annual Dues

The decision has been welcomed by industry leaders, who see it as a step towards fostering a more business-friendly environment while ensuring regulatory compliance remains balanced and fair.