By 
President Bola Tinubu has approved a temporary suspension of the Financial Reporting Council (Amendment) Act 2023, following sustained concerns from Nigeria’s organised private sector over the financial and compliance burden imposed on large private companies classified as Public Interest Entities (PIEs).
The decision, announced by the Federal Ministry of Industry, Trade and Investment, marks a major policy shift aimed at fostering a more transparent and equitable regulatory environment. It follows a comprehensive stakeholder review and technical analysis spearheaded by the Ministry.
The controversial amendment, enacted in 2023, mandated PIEs—including large, non-listed private firms—to remit between 0.02% and 0.05% of their annual turnover as regulatory dues, without an upper threshold. By contrast, publicly listed entities were subject to a flat annual cap of ₦25 million, a disparity that drew strong criticism from business associations, legal experts, and policy advocates.
In a statement personally signed on Sunday, Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, confirmed that President Tinubu has authorised an indefinite administrative pause on the implementation of the dues, citing fairness, investor confidence, and regulatory equity as guiding principles.
“To provide immediate clarity, the Honourable Minister has directed the Financial Reporting Council to apply an interim cap on annual dues for private sector PIEs, aligning them with the ₦25 million cap applicable to publicly listed companies,” the statement read.
The Minister convened a high-level stakeholder forum on March 26, 2025, in response to rising concerns from major business groups including the Oil Producers Trade Section (OPTS), the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA). These organisations warned that unchecked regulatory levies could disincentivise investment and undermine economic resilience.
Following the consultations, a Technical Working Group was established and held six meetings over three weeks, ultimately submitting its findings to the Ministry on April 17. The review identified significant risks to business continuity, compliance predictability, and corporate governance, particularly in the absence of clear legislative and economic impact assessments.
President Tinubu’s directive empowers the Ministry of Justice to determine whether a formal legislative amendment is required. In the interim, the Financial Reporting Council is expected to adhere strictly to the new cap while further consultations take place.
“Mr President has listened to the legitimate concerns of the business community and has directed that implementation of the provision be paused while a comprehensive review is conducted,” Oduwole affirmed.
The suspension of the Act is being welcomed as a significant victory for the private sector, which had argued that the blanket reclassification of large private firms as PIEs—without sufficient industry engagement—posed a threat to business viability and Nigeria’s broader economic objectives.
The Financial Reporting Council (Amendment) Act 2023 was originally introduced to expand regulatory oversight and promote financial transparency across both listed and unlisted entities. However, the move triggered widespread concern about its potential to increase the cost of doing business and strain already pressured balance sheets.
The Tinubu administration has reiterated its commitment to maintaining a business-friendly regulatory environment aligned with its 8-Point Agenda, which prioritises economic diversification, job creation, and investment attraction.
The pause on the implementation of the Act is now in effect, with the Financial Reporting Council directed to comply with the new interim ceiling, pending further policy guidance from the Ministry of Justice and National Assembly review.
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