- The Presidential Enabling Business Environment Council (PEBEC) has said that it is committed to addressing concerns raised by MAN over FRCN levies
- Manufacturers Association of Nigeria's Director-General, Segun Ajayi-Kadir, criticised the impact of increased financial obligations on manufacturers
- Stakeholder engagement sessions were planned to resolve issues around the FRCN amendments
The Presidential Enabling Business Environment Council (PEBEC) has pledged to address concerns raised by the Manufacturers Association of Nigeria (MAN) regarding the recently amended Financial Reporting Council of Nigeria (FRCN) Act, which imposes cumulative annual charges on non-listed entities.
In a statement issued on Friday, March 21, PEBEC’s Director-General, Zahrah Audu, assured that the federal government was carefully reviewing the grievances brought forward by manufacturers.
This follows a protest last week by the Director-General of MAN, Segun Ajayi-Kadir, who expressed concerns over the financial levies that, as they are currently implemented, present significant challenges to manufacturing companies, especially those not listed on the Nigerian Stock Exchange.
The FRCN Act now classifies non-listed entities as Public Interest Entities (PIEs), a reclassification that has led to increased financial burdens for such firms. Ajayi-Kadir highlighted that under the current structure, these companies are subjected to annual dues that are both exorbitant and financially crippling.
The Act imposes a 10 per cent penalty for every month of unpaid dues, with the amount accumulating until the debt is settled in full.
"For publicly quoted companies, the maximum payment was previously capped at N1 million per annum, but under the new law, this figure has risen to N25 million. Non-listed companies, which were once excluded, now face no payment cap and are required to pay fees based on their turnover—regardless of profitability," Ajayi-Kadir explained.
He warned that these financial obligations, particularly for non-listed manufacturers who make up a large portion of MAN's membership, could undermine the government’s Ease of Doing Business agenda and deter further investment in Nigeria's manufacturing sector.
In response, Audu reassured stakeholders that the federal government was keenly examining the situation. She confirmed that a series of stakeholder engagement sessions would be held to facilitate discussions and seek collaborative solutions to the challenges surrounding the new legislation.
“These changes aim to enhance transparency and accountability in financial reporting and strengthen corporate governance in Nigeria, However, we acknowledge the concerns about the payment of annual dues and fees by PIEs, and we are committed to addressing them through constructive dialogue,” Audu stated.
Audu further emphasised that PEBEC would continue to uphold best practices to ensure Nigeria remains a competitive and attractive destination for businesses and investors.
"Our commitment to driving business reforms, improving the ease of doing business, and enhancing transparency and accountability remains unwavering," she further stated.
Nigerian government to relocate 29 outdated correctional facilities
Meanwhile, TheRadar earlier reported that President Tinubu approved the relocation of 29 correctional centres across Nigeria to modernise and improve facilities.
Suleja, Ikoyi, Agodi, and other correctional centres were earmarked for relocation due to urbanisation and decay.
