Ministry convenes emergency meeting over contentious FRCN levy

The federal authorities will, on Wednesday, maintain an emergency assembly with consultants within the non-public sector in an try to quell rising discontent over a controversial levy imposed by the Monetary Reporting Council of Nigeria (FRCN).

The brand new growth involves play amid issues that the measure could erode investor confidence and complicate the nation’s broader financial reform agenda.

The discussion board, scheduled to happen in Abuja, is being convened by the Minister of Trade, Commerce and Funding, Jumoke Oduwole.

In keeping with a press assertion launched by the ministry on Tuesday, the choice follows sustained criticism from the organised non-public sector over the FRCN’s revised strategy to annual dues for Public Curiosity Entities (PIEs), which now features a wider array of corporations not beforehand captured by the levy regime.

On the centre of the dispute is Part 33(1)(c) of the FRCN Act, which mandates that quoted corporations pay 0.002 per cent of their market capitalisation or N25 million, whichever is decrease, as annual dues.

Nevertheless, latest amendments to the Act have expanded the PIE designation to incorporate massive non-public corporations, concessionaires, and privatised entities — a transfer stakeholders say was enacted with out enough session and threatens to extend regulatory and monetary burdens.

Mrs Oduwole described the assembly as a platform for “constructive dialogue round regulatory insurance policies”, including that the ministry remained dedicated to making sure that companies of all sizes are handled pretty underneath the present framework.

“That is important to enhancing enterprise competitiveness and aligning with Nigeria’s broader financial transformation agenda,” she mentioned.

Additionally, the Presidential Enabling Enterprise Surroundings Council (PEBEC), chaired by Vice President Kashim Shettima, additionally hinted at partaking stakeholders on the matter.

In a separate assertion, PEBEC Director Common Zahrah Audu acknowledged the unease surrounding the reforms and reaffirmed the council’s dedication to transparency, investor safety, and evidence-based regulation.

The Producers Affiliation of Nigeria (MAN) had earlier opposed the levy. In an announcement, its Director Common, Segun Ajayi-Kadir, mentioned the costs pose critical challenges to producers, most of whom are unlisted however now fall underneath the expanded definition of Public Curiosity Entities (PIEs) within the Act.

“For publicly quoted corporations, the utmost fee earlier was N1 million each year. Now, that quantity is hiked to N25 million! Fairly extremely, for non-listed corporations, who have been beforehand excluded, there isn’t any cap and it’s linked to the turnover, irrespective if the corporate is worthwhile or not,” he mentioned.

The timing of the reforms has drawn criticisms as Nigerian companies grapple with rising working prices, foreign money volatility, and declining shopper demand.