NECA hails Tinubu for capping FRC levy at N25m, seeks legislative amendment

By Chukwuma Umeorah

The Nigeria Employers’ Consultative Association (NECA) has commended President Bola Tinubu for capping the Financial Reporting Council (FRC) levy at N25 million for public interest entities (PIEs), including unlisted companies.

NECA described the decision as a major policy relief for Nigeria’s private sector, following concerns over the open-ended nature of the levy as stipulated in Section 33 of the FRC (Amendment) Act, 2023.

Speaking in Lagos, NECA’s director-general, Adewale-Smatt Oyerinde, said the move marks a pivotal moment for the country’s business environment, restoring confidence and reducing regulatory burdens: “This is a landmark moment for Nigeria’s private sector. The President’s decision sends a strong message that Nigeria listens, adapts and is open for sustainable business.”

Oyerinde also applauded the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, for what he termed her inclusive and evidence-driven leadership in facilitating a multi-stakeholder Technical Working Group that included NECA and other private sector stakeholders.

According to him, “The adoption of the group’s proposals, calling for a moratorium, a levy cap and legislative amendment, reflects responsive and evidence-based governance.”

NECA noted that aligning the levy treatment of listed and unlisted companies promotes regulatory equity, improves capital allocation, supports job creation and fosters enterprise growth.

The association also linked the development to broader economic reforms, including the signing of four tax laws intended to simplify Nigeria’s fiscal system and boost the competitiveness of micro, small and medium enterprises (MSMEs).

While commending the President’s intervention, NECA called on the Federal Government to quickly transmit a clean amendment bill to the National Assembly to legally enshrine the N25 million cap before the 2026 fiscal year.

“Regulatory certainty is the lifeblood of investment,” Oyerinde added, underscoring the importance of embedding the decision into law to provide legal clarity and investment stability.