The Nigeria Employers’ Consultative Association (NECA) has strongly condemned the Financial Reporting Council of Nigeria (FRC) over the imposition of what NECA describes as “outrageous” annual dues on private and non-quoted companies.
The FRC levies move has sparked widespread concern among business leaders, who warn that the increased financial burden could cripple businesses and stifle economic growth.
The FRC’s new policy, which follows the implementation of the Financial Reporting Council Amendment Act 2023, significantly increases annual dues for private firms from N1 million to hundreds of millions of naira, depending on their turnover. This drastic increase has raised eyebrows among business leaders, who argue that the new levies are excessive and unsustainable.
NECA’s Director-General, Adewale-Smatt Oyerinde, denounced the move as unjust and contradictory to the federal government’s efforts to enhance Nigeria’s business environment. “This policy is a direct contradiction to the Ease of Doing Business agenda and sends a negative signal to investors,” Oyerinde stated. “Many companies, especially in manufacturing, trading, and essential services, operate on thin margins. Adding such arbitrary financial demands increases the risk of layoffs, business closures, and an economic downturn.”
The increased financial burden on private firms could have far-reaching consequences for Nigeria’s economy. With many businesses already struggling to stay afloat due to multiple taxation, regulatory bottlenecks, and rising operational costs, the new levies could be the final straw. “The private sector is the backbone of our economy, and policies that hinder its growth will ultimately harm national development,” Oyerinde warned.
NECA is urging the Federal Government and the National Assembly to take immediate action to address the concerns of private firms. Specifically, NECA is demanding:
- Suspension of New Levies: NECA urges the Federal Government and the National Assembly to immediately suspend the enforcement of the new levies and revert to the previous N1 million fee structure pending a comprehensive review.
- Legislative Amendment: NECA calls for an urgent legislative amendment to the FRC Act to eliminate ambiguities and ensure fair and transparent oversight.
- Dialogue and Collaboration: NECA advocates for dialogue between the Federal Government, the Ministry of Industry, Trade and Investment, and key stakeholders to establish a more sustainable and justifiable compliance framework.
The FRC’s new policy has sparked widespread concern among business leaders, who warn that the increased financial burden could cripple businesses and stifle economic growth. As NECA demands urgent action to address the concerns of private firms, it remains to be seen whether the Federal Government and the National Assembly will take heed and intervene to prevent a potentially disastrous outcome.