President Bola Tinubu has ordered a temporary pause in the implementation of the controversial Financial Reporting Council (Amendment) Act 2023, which imposed new annual dues on large private companies classified as Public Interest Entities.

The decision, according to the Federal Ministry of Industry, Trade and Investment, follows months of sustained pressure from the private sector and a technical review initiated by the ministry.

Stakeholders had expressed concern over the disproportionate compliance burden and financial risk the amended Act posed to non-listed companies.

Under the Act, which was passed in 2023 and stirred criticism from business groups and, private sector, PIEs were required to pay between 0.02 and 0.05 per cent of their annual turnover as regulatory dues, without any upper limit.

By contrast, publicly listed firms were expected to remit a flat rate of N25m, regardless of size or revenue.

The Minister of Industry, Trade and Investment, Jumoke Oduwole, in a personally signed statement issued on Sunday, said the disparity raised serious concerns about equity, sustainability, and the ease of doing business.

Recall that the minister convened a high-level stakeholder consultation on March 26, 2025, in response to escalating concerns from bodies including the Oil Producers Trade Section, the Association of Licensed Telecommunications Operators of Nigeria, and the Nigeria Employers’ Consultative Association, among others.

At the meeting, industry stakeholders were vocal, emphasising the negative effects the new dues would have on businesses, particularly in a challenging economic climate.

Hence, it was concluded that the timeline for a temporary pause would not exceed 60 days.

The consultations resulted in two immediate steps: an administrative pause in enforcement and the formation of a Technical Working Group to assess the policy’s wider economic implications.

The group met six times over a three-week period. Their report was submitted to the Ministry on April 17, 2025.

However, three months after the pause, the minister disclosed that the president has now formally approved the suspension of the implementation of the dues.

Oduwole said the interim directive is meant to create stability and send a clear message that this administration prioritises transparency, investor confidence, and fairness in regulatory processes.

She added that the Ministry of Justice would be tasked with determining whether a formal legislative amendment will be necessary in the long term.

The statement read in part, “To provide immediate clarity, the Honourable Minister has directed the Financial Reporting Council to apply an interim cap on annual dues payable by private sector PIEs at N25m, aligned with the cap already in place for publicly listed entities under the legislation.

“The Minister of Industry Trade and Investment provided a detailed briefing to Mr. President on the critical concerns raised by organised private sector stakeholders before the implementation of the administrative pause and made recommendations based on the submitted report and affirms that the administrative pause will be maintained in the mid-to-long-term, pending a broader legislative review.

“This directive creates a stable environment for compliance for affected companies in the short term and reflects the Ministry’s commitment to prioritising transparency, investor confidence, and regulatory equity while allowing the Ministry of Justice to appropriately determine the longer-term path for seeking legislative amendments on behalf of the Federal Government if required.

“Mr President has listened to the legitimate concerns of the business community and has directed that implementation of the provision be paused while a comprehensive review is conducted.”

The policy shift marks a win for Nigeria’s organised private sector, which had warned that unchecked regulatory levies could discourage local investment and further weaken an already fragile economy.

The amended Act had drawn fire since December 2024, when early drafts of the policy were circulated.

Stakeholders warned that the reclassification of large private companies as PIEs without adequate consultation could upend corporate governance structures and raise operational costs in a challenging economic climate.

Oduwole affirmed that the Federal Government remains committed to its 8-Point Agenda, especially the goals of economic diversification, job creation, and attracting investment.

With the pause now in effect, the Financial Reporting Council has been directed to comply with the new interim cap, pending further guidance from the Ministry of Justice and the National Assembly.

The Financial Reporting Council (Amendment) Act 2023 was designed to bolster financial transparency by expanding oversight to include large private firms.