Minister directs FRC to cap PIEs annual levy at ₦25m
Minister of Industry, Alternate, and Investment, Dr Jumoke Oduwole, has directed the Financial Reporting Council (FRC) to practice an intervening time cap on annual dues payable by personal sector Public Hobby Entities (PIEs) at ₦ 25 million.
Oduwole said the directive aligns with the cap already in space for publicly listed entities below the FRC (Modification) Act 2023.
Underneath the Act, PIEs companies are required to remit annual dues starting from 0.02 per cent to 0.05 per cent of turnover, with no greater limit, when put next with a mounted ₦ 25 million levy for publicly quoted companies, regardless of their dimension or market capitalisation.
Stakeholders, on the opposite hand, considerable that these provisions would possibly maybe perchance perchance result in unintended, unsustainable increases in compliance costs and in the extinguish negatively bear an influence on investor confidence.
In December 2024, leading stakeholders, including those in the oil sector, Telecommunications, and NECA, expressed reservations relating to the levy, elevating concerns relating to the reclassification of enormous personal companies as PIEs, which they believed would impose a disproportionate financial burden.
Following the complaints, on March 26, 2025, the ministry held a proper public stakeholder consultation to assess the policy implications and be obvious alignment with principles of fairness, transparency, and financial competitiveness.
The consultation resulted in two key actions: a immediate-term administrative discontinue on implementation of the FRC levy for 60 days, and the institution of a Technical Working Community to provide deeper diagnosis.
The working community submitted their document to the minister on April 17, 2025. She therefore briefed the President on the serious concerns raised by organised personal sector stakeholders outdated to the implementation of the “administrative discontinue” and made suggestions essentially based on the submitted document, declaring that the manager discontinue shall be maintained in the mid- to long-term, pending a broader legislative assessment.
The minister acknowledged that the directive to the FRC to practice the intervening time cap on annual dues payable by PIEs at ₦ 25 million would set aside a stable environment for compliance amongst affected companies in the immediate term and reflects the ministry’s dedication to prioritising transparency, investor confidence, and regulatory equity.
A press free up from the ministry said this is in a position to enable the Ministry of Justice to precisely settle the longer-term direction for looking out for legislative amendments on behalf of the Federal Government, if required.
