NECA recently expressed strong disapproval of the Financial Reporting Council of Nigeria for imposing what they consider as exorbitant annual fees on private and non-quoted companies. The association cautioned that such actions could have detrimental effects on businesses and hinder economic progress.
The increased fees were a result of the implementation of the Financial Reporting Council Amendment Act 2023, extending the FRC’s regulatory reach to more companies. Private firms now face significantly higher annual dues, ranging from hundreds of millions of naira based on their turnover, up from N1m, while publicly listed companies are capped at N25m.
NECA’s Director-General criticized the move as unfair and conflicting with the government’s goal of improving the business environment, attracting investments, and creating employment opportunities. He warned that the added financial burden, coupled with existing challenges like multiple taxes and rising operational costs, could lead to closures or downsizing among private firms.
The director emphasized that such policies contradict the Ease of Doing Business agenda and could deter investors, especially in sectors operating on narrow profit margins. Regulatory uncertainties not only discourage local and foreign investments but also undermine Nigeria’s global competitiveness.
NECA urged the government and the National Assembly to halt the enforcement of the new levies and revert to the previous fee structure temporarily. They also called for legislative amendments to the FRC Act to ensure clarity and fairness in oversight. Moreover, NECA proposed dialogue involving key stakeholders to establish a more sustainable compliance framework.
Highlighting the importance of the private sector for economic growth, NECA stressed the need for policies that support rather than hinder its development. With businesses already grappling with excessive taxation and levies, there is growing pressure on the government to reconsider the FRC’s fee adjustments to prevent further strain on Nigeria’s fragile economy.