BREAKING: Federal Government Suspends Implementation Of Annual Dues

The Federal Government has announced a temporary suspension of the implementation of annual dues imposed on public interest enterprises by the Financial Reporting Council (FRC).

This decision follows widespread concerns from industry stakeholders regarding the financial impact of the new charges.

Naija News reports that the Minister of Industry, Trade, and Investment, Jumoke Oduwole,  made the announcement during a Ministerial Consultative Meeting on the Financial Reporting Council Annual Dues for Public Interest Enterprises on Wednesday in Abuja.

The meeting was convened in response to numerous official letters received by the ministry regarding the contentious issue.

Oduwole revealed that the suspension is a direct result of objections from key members of the organized private sector, including the Nigerian Employers’ Consultative Association (NECA) and the Manufacturers Association of Nigeria (MAN), who have raised concerns about the Financial Reporting Council (Amendment) Act 2023.

The new Act, which imposes cumulative annual charges on non-listed entities, has faced significant backlash due to its financial implications.

A key point of contention is a provision that imposes a 10 per cent penalty on unpaid dues for every month of default. The penalty continues to accumulate until the full payment is made, a provision that many stakeholders feel is punitive in nature.

At the meeting, stakeholders such as the Nigerian Employers’ Consultative Association (NECA), MAN, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), the Oil Producers Trade Section (OPTS), and the Association of Licensed Telecommunications Operators of Nigeria (ALTON) were vocal in their objections.

They emphasized that the new dues would further burden businesses, particularly in an already challenging economic environment.

Oduwole confirmed that the government has decided to direct the Financial Reporting Council to temporarily pause the implementation of the annual dues.

She explained, “The government has decided to direct the Financial Reporting Council to pause in the implementation of the new annual dues. While a suspension request by the organized private sector would be in contravention of legislation passed by the National Assembly, a pause is an administrative process simply to review the situation in line with what we discussed today.”

The minister further clarified that the suspension would last no longer than 60 days.

“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at most, 60 days is in my estimate. We will set up a technical working group comprised of the FRC and the organized private sector, who have formally written in, and this will be reviewed,” Oduwole added.