The Nigeria Employers’ Consultative Association (NECA) has lauded President Bola Ahmed Tinubu’s decision to cap the Financial Reporting Council (FRC) levy at N25 million for Public Interest Entities (PIEs), describing the move as a bold and strategic intervention to reduce the regulatory burden on businesses and stimulate private sector confidence.
In a statement issued in Lagos on Monday, the Director General of NECA, Mr. Adewale-Smatt Oyerinde, described the President’s intervention as a “landmark moment for Nigeria’s economic governance” and a welcome relief for companies previously affected by the open-ended levy system enshrined in Section 33 of the controversial FRC (Amendment) Act, 2023.
Oyerinde noted that the cap, alongside a temporary suspension of the implementation of the amended Act, would not only ease financial pressure on non-listed companies but also encourage enterprise development, job creation, and capital expansion—particularly among Nigeria’s struggling large private firms.
The President’s directive to halt the full execution of the 2023 FRC (Amendment) Act came after months of sustained lobbying from private sector actors and extensive technical consultations led by the Federal Ministry of Industry, Trade, and Investment. The Act had drawn widespread criticism for its provisions, which mandated PIEs to remit 0.02 to 0.05 percent of their annual turnover as regulatory dues—without any stipulated upper limit.
Business groups warned that such an open-ended provision imposed a disproportionate compliance burden, discouraged investment, and risked driving companies into financial distress. The absence of a levy ceiling particularly raised alarm, with stakeholders calling for an urgent review to protect unlisted companies, which account for a large percentage of private sector employment in Nigeria.
NECA also commended the leadership of the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, for her role in fostering a collaborative and inclusive reform process. Oyerinde highlighted the efforts of the multi-stakeholder technical working group—comprising representatives from NECA, other private sector bodies, and government regulators—which presented proposals that included a moratorium, a levy cap, and a call for legislative clarity.
“The adoption of these proposals reflects responsive and evidence-based governance,” Oyerinde said, adding that the alignment of regulatory treatment for both listed and unlisted companies promotes fairness, investor confidence, and enterprise growth.
While commending the President’s proactive stance, NECA urged the Federal Government to go a step further by transmitting a clean amendment bill to the National Assembly. This legislative update would formally entrench the N25 million cap in law and eliminate ambiguity before the 2026 fiscal year, ensuring long-term legal certainty for businesses.
“Regulatory certainty is the lifeblood of investment,” Oyerinde emphasized. “President Tinubu’s decision sends a strong message to the global business community: Nigeria listens, adapts, and is open for sustainable business.”
NECA further noted the timing of the reform, coming shortly after Tinubu’s signing of four transformative tax laws aimed at simplifying Nigeria’s fiscal framework and enhancing the competitiveness of Micro, Small and Medium Enterprises (MSMEs). According to NECA, this reflects a broader policy commitment to economic inclusivity and private sector development under the Renewed Hope Agenda.
Industry observers believe the President’s move to cap the FRC levy could signal a turning point in Nigeria’s regulatory landscape, where excessive compliance burdens have often deterred foreign direct investment and constrained business expansion. Several business associations and chambers of commerce have echoed NECA’s call for a legislative follow-through, describing the cap as a necessary first step toward comprehensive regulatory reform.
With the 2026 fiscal year approaching, pressure is mounting on the National Assembly to accelerate the amendment process to avert confusion or legal disputes.
As the private sector awaits formal legislative action, President Tinubu’s decision is already being hailed as a practical example of responsive governance—one that prioritizes ease of doing business and supports the growth of Nigeria’s real sector.