President Bola Ahmed Tinubu's recent decision to cap the Financial Reporting Council (FRC) levy at ₦25 million for Public Interest Entities (PIEs), including unlisted companies, has been met with widespread commendation from the Nigeria Employers’ Consultative Association (NECA). Speaking in Lagos, NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, described the action as a landmark moment for Nigeria’s private sector, emphasizing its role in restoring confidence and significantly reducing the regulatory burden previously imposed by the open-ended levy found in Section 33 of the FRC (Amendment) Act 2023.

The controversial FRC (Amendment) Act 2023, which was passed last year, had drawn criticism from various business groups and the private sector. Under its provisions, PIEs were required to pay regulatory dues ranging from 0.02 to 0.05 per cent of their annual turnover, with no specified upper limit. This structure had raised significant concerns regarding the disproportionate compliance burden and financial risks it posed, especially for non-listed companies. President Tinubu's decision to introduce a temporary pause in the implementation of the Act, prior to this new cap, followed months of persistent pressure from the private sector and a thorough technical review initiated by the Federal Ministry of Industry, Trade and Investment.

Mr. Oyerinde also extended appreciation to Dr. Jumoke Oduwole, the Minister of Industry, Trade, and Investment, for her inclusive leadership in facilitating a multi-stakeholder Technical Working Group. This group, which included NECA and other key private sector players, played a crucial role in proposing a moratorium, a definitive levy cap, and necessary legislative amendments. NECA highlighted that the adoption of these proposals reflects a commitment to responsive and evidence-based governance, reinforcing the government's willingness to listen and adapt.

NECA further stressed that the policy alignment, particularly between listed and unlisted companies, is expected to enhance equity, stimulate job creation, and free up capital essential for enterprise growth. The association also recognized the strategic timing of this reform, noting its synergy with the recent signing of four transformative tax laws. These new tax laws are aimed at streamlining Nigeria’s fiscal architecture and bolstering the competitiveness of Micro, Small, and Medium Enterprises (MSMEs), aligning with the broader economic development agenda.

To ensure full legal clarity and cement these gains, the NECA Director-General urged the Federal Government to promptly transmit a clean amendment bill to the National Assembly. This crucial step is needed to formally embed the ₦25 million cap into law before the 2026 fiscal year. Mr. Oyerinde concluded by stating, “Regulatory certainty is the lifeblood of investment,” adding that the President’s decisive action sends a strong message that Nigeria listens, adapts, and is genuinely open for sustainable business practices.