The Manufacturers Association of Nigeria (MAN) has expressed strong reservations over the Financial Reporting Council of Nigeria’s (FRCN) implementation of annual charges on private companies.
According to MAN’s Director General, Segun Ajayi-Kadir, these charges pose significant challenges to manufacturing companies, particularly non-listed entities.
The FRCN Amendment Act, 2023, introduced a new section 33, which mandates annual charges for non-listed entities, calculated as a percentage of their annual turnover.
For companies with a turnover exceeding N10 billion, the maximum charge is 0.05%. Notably, publicly quoted companies now face a maximum payment of N25 million, a substantial increase from the previous N1 million.
Non-listed companies, previously exempt, are now subject to these charges without a cap, regardless of profitability.
Ajayi-Kadir emphasized that these charges and penalties could be detrimental to the government’s commitment to ease of doing business.
The implementation of these charges during a challenging time for manufacturers and businesses may exacerbate the situation.
MAN is urging the FRCN to reconsider the implementation of these charges and await the enactment of tax reform laws.
The association stresses that the government’s swift action is necessary to prevent unpleasant consequences for businesses and the economy.
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