The Nigeria Employers’ Consultative Association (NECA) has strongly criticized the Financial Reporting Council of Nigeria (FRC) over what it described as “outrageous” annual dues imposed on private and non-quoted companies. NECA warned that this move could severely hinder business growth and economic development.
In a statement, NECA expressed concern about the implementation of the Financial Reporting Council Amendment Act 2023 (FRC Act), which expanded the regulatory scope of the FRC. The new policy has significantly increased the annual dues for private companies, with fees now ranging from N1 million to several hundred million naira, based on company turnover. In contrast, publicly listed companies’ dues remain capped at N25 million.
NECA’s Director-General, Adewale-Smatt Oyerinde, criticized the policy as unjust and counterproductive to the federal government’s efforts to improve Nigeria’s business climate, attract investment, and create jobs. He warned that the higher financial burden on private companies, already grappling with excessive taxation, regulatory hurdles, and rising operational costs, could lead to closures or downsizing.
“This policy contradicts the Ease of Doing Business agenda and sends a negative message to investors,” Oyerinde stated, adding that the regulatory unpredictability discourages both local and foreign investment, diminishing Nigeria’s competitiveness.
Oyerinde also expressed concern that arbitrary levies imposed by regulatory agencies without proper consultation could undermine investor confidence and jeopardize businesses. NECA called on the Federal Government and the National Assembly to immediately suspend the enforcement of the new fees and revert to the previous N1 million structure until a comprehensive review is conducted.
Additionally, NECA urged for an urgent amendment to the FRC Act to remove ambiguities and ensure fair and transparent oversight.
Oyerinde also called for dialogue between the government, the Ministry of Industry, Trade and Investment, and key stakeholders, such as NECA, the Manufacturers Association of Nigeria, and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, to develop a more sustainable and reasonable compliance framework.
