President Bola Tinubu has ordered an immediate suspension of the implementation of the controversial Financial Reporting Council (Amendment) Act 2023, following mounting pressure from Nigeria’s private sector and a comprehensive policy review by the Federal Ministry of Industry, Trade and Investment.
The legislation, which reclassified large private companies as Public Interest Entities (PIEs), had imposed new annual regulatory dues ranging from 0.02% to 0.05% of a company’s annual turnover — with no upper limit. In contrast, publicly listed firms were only required to pay a flat fee of ₦25 million, raising equity concerns across industries.
In a statement personally signed and released on Sunday, the Minister of Industry, Trade and Investment, Jumoke Oduwole, confirmed the president’s approval of a temporary pause in the enforcement of the dues. The move, she said, was driven by a desire to ensure fairness, regulatory balance, and investor confidence.
“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,” the minister stated.
The directive follows months of consultations between the ministry and key private sector bodies, including the Oil Producers Trade Section, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Nigeria Employers’ Consultative Association (NECA), among others.
A high-level stakeholder meeting was convened on March 26, 2025, where businesses raised alarms over the disproportionate burden the amended Act placed on non-listed entities, especially amid economic headwinds. The consultations resulted in two key outcomes: an administrative pause in the policy’s rollout and the formation of a Technical Working Group (TWG) to examine its wider implications.
The TWG held six meetings within three weeks and submitted its findings on April 17. While the ministry had initially maintained a 60-day administrative pause, Sunday’s announcement marks a formal suspension, extending the halt in enforcement indefinitely, pending broader legislative review.
“To provide immediate clarity, the minister has directed the Financial Reporting Council to apply an interim cap on annual dues payable by private sector PIEs at ₦25 million — the same as that for publicly listed entities,” the statement added.
The Federal Ministry of Justice has been tasked with determining whether a formal amendment to the Act will be necessary, reflecting a broader reassessment of Nigeria’s regulatory approach to private sector compliance.
The decision is being hailed as a win for Nigeria’s organised private sector, which has long expressed fears that the legislation — if implemented without reform — would drive up operational costs, discourage local investment, and further strain a fragile economy.
Critics had also condemned the lack of proper consultation during the drafting of the amendment, with some stakeholders warning that the reclassification of private firms as PIEs could disrupt corporate governance norms and legal structures.
Industry observers say the move underscores the Tinubu administration’s responsiveness to investor concerns and its stated commitment to the 8-Point Agenda, particularly its focus on economic diversification, job creation, and business-friendly reforms.
With the interim cap now in effect, the Financial Reporting Council has been directed to halt all further implementation of the amended dues until further guidance is received from the Ministry of Justice and, potentially, the National Assembly.
The Financial Reporting Council (Amendment) Act 2023 was initially designed to expand oversight and financial transparency by bringing large private entities under stricter regulatory scrutiny. However, with the new pause directive, the government appears poised to strike a balance between oversight and business viability.
