Manufacturers Reject New Financial Charges by FRCN

The Manufacturers Association of Nigeria (MAN) has strongly opposed newly imposed financial charges on private companies by the Financial Reporting Council of Nigeria (FRCN) under the revised FRCN Act.

Segun Ajayi-Kadir, Director General of MAN, warned, “These charges pose a significant threat to business survival and contradict the government’s ease of doing business agenda.”

“Under the FRCN Amendment Act 2023, a new Section 33 requires annual charges for non-listed companies, calculated as a percentage of their annual turnover, with a maximum of 0.05% for companies earning more than N10 billion.”

“For publicly listed companies, the previous maximum fee was N1 million per year. Now, it has skyrocketed to N25 million. Worse still, non-listed companies, which were previously exempt, now face uncapped fees, calculated regardless of profitability.”

Ajayi-Kadir further argued, “The strict penalties and potential imprisonment for non-payment resemble criminal law provisions. Generally, failure to pay regulatory fees results in fines, not imprisonment—unless non-payment is deemed an act of defiance or fraud.”

“MAN, therefore, urges the FRCN to reconsider the detrimental impact of these charges and suspend their enforcement. We call on the council to wait for tax reform laws to be enacted and align its policies accordingly.”

He concluded, “Delaying the implementation of these FRCN charges would support the federal government’s broader fiscal and tax reform strategy aimed at harmonizing regulations, reducing business burdens, and fostering economic growth.”