FG to address MAN’s concerns oer FRCN levies

PEBEC Director-General, Princess Zahrah Audu

The Presidential Enabling Business Environment Council, on Friday, promised to look into the concerns raised by the Manufacturers Association of Nigeria over the Financial Reporting Council of Nigeria Amendment Act, which imposes cumulative annual charges on non-listed entities.

PEBEC Director-General, Princess Zahrah Audu, disclosed this in a statement made available to journalists in Abuja.

The Director-General of MAN, Segun Ajayi-Kadir had protested in a statement last week, warning that the financial levies, as currently implemented, pose significant challenges to manufacturing companies, especially non-listed entities which are categorised under the current Public Interest Entities of the said Act.

The Act imposes a 10 per cent penalty on unpaid dues for every month of default, accumulating until full payment.

Ajayi-Kadir described the levies as “exorbitant,” stressing that non-listed manufacturing firms—predominantly MAN members—have now been reclassified as Public Interest Entities, thereby subjecting them to oppressive financial obligations.

“For publicly quoted companies, the maximum payment earlier was N1 million per annum. Now, that amount is hiked to N25 million! Quite incredibly, for non-listed companies, who were previously excluded, there is no cap, and it is linked to the turnover, irrespective of whether the company is profitable or not,” he said.

According to him, the Act contradicts the government’s Ease of Doing Business agenda and poses a serious threat to investments in Nigeria’s manufacturing sector.

Reacting, Audu allayed the fear, saying the Federal Government is carefully looking into the manufacturers’ complaint.

The statement partly read, “These changes aim to enhance transparency and accountability in financial reporting and strengthen corporate governance in Nigeria. However, issues have arisen regarding the payment of annual dues and fees by PIEs.

“To address the concerns surrounding the FRCN’s recent amendments, we are holding a series of stakeholder engagements. These sessions aim to foster open discussions and collaborative problem-solving among key stakeholders. We hope to find a meaningful solution for all parties shortly.

“We call on all parties to remain assured that PEBEC will continue to emulate best practices, ensuring Nigeria remains competitive and an attractive destination for businesses and investors. Our commitment to driving business reforms, improving the ease of doing business, and enhancing transparency and accountability remains unwavering.”