JUST IN: FG suspends financial council dues after backlash

The Federal Government has announced a temporary suspension of the implementation of annual dues imposed on public interest enterprises by the Financial Reporting Council.

This came following widespread concerns from industry stakeholders.

The Minister of Industry, Trade, and Investment, Jumoke Oduwole, disclosed the decision at a Ministerial Consultative Meeting on the Financial Reporting Council Annual Dues for Public Interest Enterprises on Wednesday in Abuja.

The meeting was called in response to numerous official letters the ministry received regarding the issue.

Oduwole stated that the suspension follows a series of objections from the organised private sector, particularly the Nigeria Employers’ Consultative Association and Manufacturers Association of Nigeria, who raised concerns over the Financial Reporting Council (Amendment) Act 2023.

The Act, which imposes cumulative annual charges on non-listed entities, has been met with backlash due to its financial impact.

One of the key points of contention is a provision in the Act that imposes a 10 per cent penalty on unpaid dues for every month of default, which continues to accumulate until full payment is made.

At the meeting, Industry stakeholders such as the Nigerian Employers’ Consultative Association, MAN, Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Oil Producers Trade Section and Association of Licensed Telecommunications Operators of Nigeria were vocal during the meeting, emphasising the negative effects the new dues would have on businesses, particularly in a challenging economic climate.

Disclosing the decision, Oduwole explained, “The government has decided to direct the Financial Reporting Council to pause in the implementation of the new annual dues. You know that I am a lawyer, and a suspension request by the organised private sector would be in contravention of legislation duly passed by the National Assembly. A pause is an administrative process simply to review, in line with what we discussed today.”

The minister further indicated that the timeline for the suspension would not exceed 60 days.

She assured that the government is committed to addressing the concerns raised by the private sector.

“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at the most, 60 days is in my estimate. We are going to set up a technical working group comprised of the FRC and the organised private sector who have formally written in, and this will be reviewed,” Oduwole said.