‘Outrageous’ levies on private firms will stifle growth, NECA warns
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Nigeria’s foremost employers’ body has launched a scathing attack on the Financial Reporting Council of Nigeria (FRC), condemning its imposition of what it describes as “outrageous” annual levies on private and non-quoted companies.
The Nigeria Employers’ Consultative Association (NECA) warned that the new charges, introduced under the Financial Reporting Council Amendment Act 2023, pose a serious threat to businesses, potentially crippling companies and dampening economic growth.
Under the new regime, annual dues for private firms have soared from N1 million to hundreds of millions of naira, depending on turnover, while publicly listed companies face a ceiling of N25 million. NECA’s Director-General, Adewale-Smatt Oyerinde, condemned the move as inequitable and a direct contradiction of the federal government’s stated objective of improving the ease of doing business.
“This policy sends a negative signal to investors,” Oyerinde said. “Private companies are already struggling with multiple taxation, regulatory bottlenecks, and escalating operational costs. The additional financial burden could drive many out of business or force them to cut jobs.”
He added that the unpredictability of regulatory changes undermines confidence in Nigeria’s business environment, making it less attractive to both local and foreign investors.
“If regulatory agencies can unilaterally impose arbitrary levies without consultation, it erodes investor confidence and pushes businesses to the brink,” he said.
NECA has called on the federal government and the National Assembly to suspend the new charges and reinstate the previous N1 million fee structure while a thorough review is conducted. Oyerinde also urged for an urgent amendment to the FRC Act to ensure fair and transparent regulation.
The association further pressed for dialogue between the federal government, the Ministry of Industry, Trade and Investment, and key business groups, including the Manufacturers Association of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, to develop a more sustainable regulatory framework.
“The private sector is the backbone of our economy, and policies that hinder its growth will ultimately harm national development,” Oyerinde said.
With growing dissatisfaction among businesses over excessive levies, pressure is mounting on the federal government to reconsider the FRC’s new financial demands to avoid further economic strain.
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