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The federal government has suspended the implementation of annual fees imposed on public companies by the Financial Reporting Council (FRC).
This follows the opposition by industrial stakeholders.
Minister of Trade and Investment, Dr. Jumoke Oduwole, revealed this at the Minister’s consultative meeting on the annual contribution of the Financial Reporting Council for the Public Interest Company on Wednesday in Abuja.
She said the decision followed objectives from the organized private sector, particularly the Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, MINES, AND AGRICULTURE (Naccima), Oil Producers Trade Section and Association of Licensed Telecommunications Operators of Nigeria (ALTON), Who raised concerns over the Financial Reporting Council (AMENDMENT) Act 2023.
The law, which imposes a cumulative annual fee for unregistered entities, has been met with a reaction due to its financial impact.
One of the main points of quarrels is the provision in actions that impose a 10 percent sentence on unpaid fees for each default month, which continues to pile up until full payment is made.
At the meeting, stakeholders condemned the negative impacts that will be owned by new contributions on business, especially in challenging economic climates.
Speaking of the decision, Oduwole said: “The government has decided to direct the Financial Reporting Council to pause the implementation of new annual contributions.
“You know that I am a lawyer, and a request for a suspension by an organized private sector will be in conflict with the laws ratified by the National Assembly. Pause is the administrative process only to be reviewed, in line with what we discuss today.”
The minister noted that the time line for the suspension of implementation would not exceed 60 days.
Also read: Nigerian government promise reviews when producers condemn the cost of new financial reporting
He assured that the government would overcome the concerns filed by the private sector.
The Minister added: “We are a hearing administration. The private sector has requested a range of three months to unlimited suspension. We will not do that. So, at most, 60 days in my estimate. We will establish a technical working group consisting of FRC and organized private sector, which is officially written, and this will be reviewed.
“We have listened because we are the government who listens, and the president has been given a briefing going forward, and he said, you know, we are the government who listens, and we want the private sector to feel comfortable, we want the economy to develop.
“We have seen the best global practice on each side, and we have found the best for Nigeria. We made a proposition, and then, of course, we had to return to parliament. Wherever we landed, it still returned to the National Assembly.
“I have been briefing to the Chairperson of the DPR Committee on Trade that this conversation is ongoing, but we will not overtake the discussion and dialogue between stakeholders, we let them land in a comfortable place, which is clear that they cannot pay what they used to pay, but they might not pay what they were asked to pay.”
Director General of Neca, Mr. Adewale Oyerinde said the levy in actions changed was contrary to the fundamental pillar of this administrative agenda.
By: Babajide Okeowo
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