The Federal Government has suspended the implementation of annual dues imposed on public enterprises by the Financial Reporting Council (FRC).
This followed opposition by industry stakeholders.
The Minister of Trade and Investment, Dr. Jumoke Oduwole, disclosed this at the Ministerial Consultative Meeting on the Financial Reporting Council Annual Dues for Public Interest Enterprises on Wednesday in Abuja.
She said the decision followed objections from the organised 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 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 percent penalty on unpaid dues for every month of default, which continues to accumulate until full payment is made.
At the meeting, the stakeholders decried the negative effects the new dues would have on businesses, particularly in a challenging economic climate.
Speaking on the decision, Oduwole said: “The government has decided to direct the Financial Reporting Council to pause 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 noted that the timeline for the suspension of the implementation would not exceed 60 days.
She assured that the government would address the concerns raised by the private sector.
The minister added: “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 composed of the FRC and the organised private sector, who have formally written in, and this will be reviewed.
“We’ve listened because we’re a listening government, and the President has been briefed ahead, and he said, you know, we’re a listening government, and we want the private sector to be comfortable, we want the economy to thrive.
“We’ve already looked at global best practices on each side, and we’ve come up with the best fit for Nigeria. We make the proposition, and then, of course, we have to go back to Parliament. Wherever we land, it is still going back to the National Assembly.
“I already ahead briefed the chair of the House Committee on Commerce that this conversation is going on, but we’re not going to preempt the discussion and the dialogue between the stakeholders, we let them land to where it’s comfortable, what is clear is that they cannot pay what they used to pay, but they may not pay what they are being asked to pay.”
The Director-General of NECA, Mr. Adewale Oyerinde said the levies in the amended act contradict the fundamental pillar of this administration’s agenda.
By: Babajide Okeowo