Tinubu Suspends Financial Reporting Levy for Private Companies

In a major policy shift aimed at easing the regulatory burden on businesses, President Bola Tinubu has approved the suspension of the implementation of the Financial Reporting Council (Amendment) Act 2023, which imposed new financial reporting dues on large private companies in Nigeria.

The decision, formally announced on Sunday by Minister of Industry, Trade and Investment, Jumoke Oduwole, comes after months of pressure from Nigeria’s organised private sector and a series of high-level consultations. The controversial amendment had classified large private companies as Public Interest Entities (PIEs), requiring them to pay between 0.02 and 0.05 percent of their annual turnover as regulatory dues—without any upper limit.

In contrast, publicly listed companies were subjected to a flat ₦25 million fee, leading to widespread concerns over regulatory equity and sustainability, especially amid Nigeria’s tough economic conditions.

“This directive creates a stable environment for compliance for affected companies in the short term and reflects the administration’s commitment to prioritising transparency, investor confidence, and regulatory fairness,” Oduwole said in her statement.

According to the ministry, the President’s directive stems from findings submitted by a Technical Working Group, which reviewed the economic implications of the amended law after the government initiated an administrative pause in March 2025. The group, which included representatives from the Oil Producers Trade Section, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Nigeria Employers’ Consultative Association (NECA), and other business bodies, held six meetings over three weeks.

The group’s final report, submitted in April, recommended suspending the dues and aligning private company obligations with those of publicly listed firms. In response, Tinubu directed the Financial Reporting Council (FRC) to apply an interim cap of ₦25 million for PIEs, pending a long-term policy or legislative review.

Oduwole emphasized that the Ministry of Justice would now determine whether a formal amendment to the 2023 Act is needed. “The administrative pause will be maintained in the mid-to-long term, pending a broader legislative review,” she noted.

The Financial Reporting Council (Amendment) Act 2023 was originally designed to bolster financial transparency by expanding oversight to include large private firms, particularly those deemed influential in economic and social governance. However, its implementation sparked backlash from the business community, which accused the government of hastily reclassifying companies without adequate consultation.

Critics warned that the law would not only increase operating costs but also erode investor confidence in Nigeria’s already volatile business environment. Industry leaders stressed that the absence of a cap could lead to arbitrary levies and financial instability for companies struggling with inflation, foreign exchange constraints, and supply chain disruptions.

In response to these concerns, Oduwole convened a stakeholder dialogue in Abuja on March 26, 2025. The event marked a turning point, as it revealed the overwhelming opposition to the dues from nearly all major private sector groups.

One official from a leading oil and gas association, speaking anonymously, described the law as “a poorly structured tax in disguise” and warned it would “drive local and international investors further away.”

President Tinubu’s decision is being lauded as a welcome sign of government responsiveness. Analysts say it will likely bolster Nigeria’s standing in global ease-of-doing-business rankings and encourage more private sector engagement in national economic development.

The move also aligns with Tinubu’s broader economic reform agenda, which includes fiscal discipline, regulatory simplification, and private sector-led growth. Oduwole reiterated the administration’s commitment to the 8-Point Agenda, particularly economic diversification, investment attraction, and job creation.

For now, the Financial Reporting Council has been instructed to enforce the interim cap while refraining from collecting any additional turnover-based dues until further notice. The Ministry of Justice and National Assembly are expected to initiate a full review in the coming months.

With the suspension now official, stakeholders are hopeful that future regulatory reforms will reflect inclusiveness, balance, and alignment with Nigeria’s long-term economic goals.