Nigerian govt pledges review as manufacturers decry new financial reporting fees

The Presidential Enabling Business Environment Council (PEBEC) on Friday, responded to growing concerns from Nigeria’s manufacturing sector regarding the Financial Reporting Council of Nigeria (FRCN) Amendment Act, which introduces cumulative annual charges on non-listed companies.

This comes after the Manufacturers Association of Nigeria (MAN) strongly opposed the new financial obligations, calling them crippling and unjust for businesses already struggling under economic pressures.

Last week, MAN’s Director-General, Segun Ajayi-Kadir, issued a warning about the severe financial strain these levies could impose on manufacturing firms.

He pointed out that the Act now categorizes non-listed manufacturing firms as Public Interest Entities (PIEs), subjecting them to annual charges that escalate rapidly with unpaid dues. The law mandates a 10% penalty per month on outstanding payments, accumulating indefinitely until fully settled.

“For publicly quoted companies, the maximum payment used to be ₦1 million per year. Now, it has skyrocketed to ₦25 million,” Ajayi-Kadir revealed.

“But for non-listed companies, there’s no cap at all. Their charges are tied to turnover whether they are profitable or not.”

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MAN argues that this policy runs counter to the Federal Government’s Ease of Doing Business agenda, a key initiative aimed at attracting investment and boosting industrial growth.

Ajayi-Kadir warned that the levies could stifle growth, discourage new investments, and force struggling manufacturers out of business.

In response, PEBEC Director-General, Princess Zahrah Audu, assured manufacturers that the government is reviewing their concerns and prioritizing discussions with industry stakeholders.

“These changes aim to enhance transparency and accountability in corporate governance,” Audu stated in an official release on Friday. “However, we acknowledge the issues raised regarding the financial burden on companies.”

She further assured that PEBEC is facilitating a series of stakeholder engagements to address the manufacturers’ concerns and reach a fair resolution.

“We remain committed to ensuring Nigeria remains a competitive and attractive destination for businesses and investors,” she said. “PEBEC will continue to uphold best practices and drive reforms that truly benefit businesses.”

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