FG to review new FRCN charges, pauses implementation

The federal government has paused the implementation of new annual levies imposed on private enterprises by the Financial Reporting Council of Nigeria (FRCN).

Jumoke Oduwole, minister of industry, trade, and investment, spoke on Wednesday, after a ministerial consultative meeting on annual dues for public interest entities (PIE) under the FRCN Amendment Act of 2023.

The Manufacturers Association of Nigeria (MAN) had reportedly opposed the implementation of the new financial charges, saying they are “exorbitant” and pose significant challenges to the manufacturing companies.

Speaking to journalists, Oduwole said implementation will be paused for review, noting that it is not a suspension.

“A suspension would be a contravention of a legislation that is duly passed by a National Assembly,” she said.

“A pause is an administrative process simply to review in line with what we’ve discussed today and so that’s what we’re going to do because we’re a listening administration.

“That’s the difference. We will get back to you on the timeline of the pause but it’s not going to be anything long.

“The private sector has asked from a range of two to three months to a range of indefinite suspension. We’re not going to do that.

“Between, at the most 60 days, we’re going to set up a technical working group comprised of FRCN and organised private sector representatives.

“They wrote in formally, they wrote in written submissions which will be reviewed. Also the chair of the tax policy reform committee, presidential tax policy reform committee will be a member of that as well.

“They also wrote in formally. So we’ll review it. We’ve landed, you can see it was a cordial conversation.

“You can see the head of Nigeria’s organised private sector, you can see the ES of the financial reporting council.

“We’ve listened because we’re a listening government and Mr. President had been briefed ahead and he said you know we’re a listening government and we want the private sector to be comfortable.”

‘WE WILL COME UP WITH THE BEST FIT FOR NIGERIA’

Oduwole said the team already looked at global best practices and would 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,” the minister said.

“I already 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 will 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 have been asked to pay. As a lawyer, I will hold my case. I’m not a judge but we’ll wait and see.”

Oduwole thanked the Nigerian private sector for their belief in the administration of President Bola Tinubu.

The Presidential Enabling Business Environment Council (PEBEC) on Tuesday said it is also addressing concerns surrounding the annual dues and fees imposed on companies by the FRCN.