FG SUSPENDS IMPLEMENTATION OF PRC LEVY ACT .... As Oduwole Says Govt Wants Growing Private Sector, Thriving Economy

Dr. Jumoke Oduwole, Honourable Minister, Trade and Investment FMITI flanked by the Permanent Secretary FMITI Amb Nura Abba Rimi and  Dr. Rabiu Olowo, CEO of FRC

"We are a listening government, and we want the private sector to be comfortable. We want the economy to thrive." Oduwole.

.... Says, "We have already looked at global best practices on each side, and we will come up with the best for Nigeria. We have to go back to the Parliament, wherever we land, it is still going back to the National Assembly.

.... “We are not going to preempt the discussions and the dialogue between the stakeholders. What is clear is that they cannot pay what they used to pay, but they may not pay what they are being asked to pay”.

The implementation of the new levy by the Financial Reporting Council of Nigeria (FRC) again met a brick wall on Wednesday in Abuja when key stakeholders from the manufacturing sector restated their opposition to the newly approved levy, citing present financial challenges in the country.

The contentious issue bordered on Section 33(1)(c) of the FRCN Act, which stipulates that quoted companies are to pay annual dues based on 0.002% of their market capitalization or ₦25 million, whichever is lower.



Among those that opposed the levy was the Nigeria Employers’ Consultative Association that described FRC imposition of the annual dues on private and non-quoted companies as “outrageous”.



NECA, in its position warned that the imposition could further cripple businesses and stifle economic growth.



“This outcry follows the implementation of the Financial Reporting Council Amendment Act 2023 (FRC Act), which expanded the scope of companies under the FRC’s regulatory oversight,” the NECA statement had stated.

The Honourable Minister of Trade and Investment, Federal Ministry of Industry, Trade and Investment, Dr. Jumoke Oduwole in her bid to address the disagreement had therefore, convened the stakeholders meeting. 



Oduwole, while addressing the stakeholders who had called for an outright suspension of the levy, stated that the implementation of the Act would be paused to allow further review. 



“A suspension will be a contravention of a legislation that was passed by the National Assembly. A pause is an administrative process simply to review what we have discussed today. And so that is what we are going to do, because we are a listening administration." She said.



“The private sector has asked for a range of two to three months not an indefinite suspension. We are not going to do that.



“So, between now and at most 60 days, we are going to set up a Technical Working Group comprising of the FRC and Organised Private Sector representatives.”



"The review of the levy can be embarked upon since the the private sector had formally made written submissions," she further disclosed.



“The Chairman of the Tax Policy Reform Committee will also be a member of that committee and, as you can see, it was a cordial conversation. You can see the Head of Nigeria’s Organised Private Sector, you can see the CEO of the Financial Reporting Council, and we have listened because we are a listening government.



“You know, we are a listening government, and we want the private sector to be comfortable. We want the economy to thrive. 



"So this is what we are going to do. We have already looked at global best practices on each side, and we will come up with the best for Nigeria.



“We will make the proposition and then, of course, we have to go back to the Parliament, wherever we land, it is still going back to the National Assembly.



“We are not going to preempt the discussions and the dialogue between the stakeholders. What is clear is that they cannot pay what they used to pay, but they may not pay what they are being asked to pay” she stated.

At the meeting, the Chairman of the Organised Private Sector, Dele Oye, including the Manufacturers Association of Nigeria (MAN), the Oil Trade Section, and other organisations, had requested for the suspension of the new levy. 



Oye, in his speech had pointed out that the levy would further add to the burden of multiple taxes businesses in the country, which the businesses are already struggling with.



The Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, warned against more taxes as it could force many companies out of the market since businesses in the country were already struggling to survive and therefore, called for the levy’s suspension. 



On his part, the Chief Executive Officer (CEO) of the FRC, Dr. Rabiu Olowo, backed the continued implementation of the levy, stressing that the levy would enable the Council serve financial entities better.