On Friday, the Presidential Enabling Business Environment Council pledged to address the issues highlighted by the Manufacturers Association of Nigeria regarding the Financial Reporting Council of Nigeria Amendment Act. This act introduces cumulative yearly fees for non-listed organizations.
The PEBEC Director-General, Princess Zahrah Audu, shared this information with reporters in Abuja through a provided statement.
Segun Ajayi-Kadir, the Director-General of MAN, voiced objections in a recent statement, expressing concerns that the present implementation of these financial charges presents substantial difficulties for manufacturing firms—particularly those not listed, which fall under the category of current Public Interest Entities according to the relevant legislation.
The legislation levies a 10 percent fine on outstanding payments for each month of delinquency, with these charges accruing until complete repayment is made.
Ajayi-Kadir characterized the charges as "excessive," emphasizing that manufacturing companies not previously listed—which are mostly members of MAN—have been newly categorized as Public Interest Entities. This change subjects them to burdensome financial responsibilities.
"For publicly traded firms, the highest allowable payment before was 1 million Nigerian naira annually. This limit has now been increased to 25 million naira! Interestingly, for private companies, which were previously ineligible, there is no such ceiling. Instead, their payments are tied directly to revenue, regardless of profitability," he explained.
As per his view, the Act goes against the government’sEase of Doing Business initiative and presents a significant risk to investments within Nigeria’s manufacturing industry.
Responding, Audu alleviated concerns, stating that the Federal Government is meticulously addressing the manufacturers' complaints.
Part of the statement said, "These modifications are intended to improve transparency and accountability in financial reporting as well as reinforce corporate governance in Nigeria. Nevertheless, concerns have emerged about the timely payment of yearly charges and fees by Publicly-Incorporated Entities (PIEs)."
To tackle the issues raised by the recent changes made by the FRCN, we are organizing a sequence of meetings with various stakeholders. The purpose of these gatherings is to encourage transparent dialogue and joint efforts in resolving problems together. Our objective is to reach a satisfactory resolution for everyone involved soon.
We urge all stakeholders to be confident that PEBEC will keep following exemplary standards, guaranteeing Nigeria stays competitive and appealing for companies and investors. We are dedicated to advancing business reforms, simplifying entrepreneurial processes, and boosting transparency and accountability without wavering.
Provided by SyndiGate Media Inc. Syndigate.info ).
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