The Presidential Enabling Business Environment Council (PEBEC) has called for revisions to the Financial Reporting Council (FRC) Act to reduce the council’s regulatory oversight of Nigerian companies. Director-General Zahrah Audu expressed concerns regarding the current law, claiming it grants the FRC excessive authority over nearly all registered entities in the country.
Ms. Audu addressed journalists in Abuja, stating that certain provisions of the law are too broad, making it difficult to justify their application. “The language used in the bill suggests oversight over almost every legal entity, which is concerning,” she noted, emphasizing the need for amendments in the upcoming administration.
PEBEC has also intervened recently to pause the implementation of proposed new levies from the FRC on businesses. Following industry complaints, the agency engaged with stakeholders and succeeded in suspending the charges, illustrating its commitment to advocate on behalf of the private sector.
The FRC Act, originally enacted in 2011 and amended in 2023, establishes the Financial Reporting Council of Nigeria, which regulates accounting, auditing, and corporate governance standards across the nation. Among its responsibilities is overseeing public interest entities (PIEs), which include listed companies, banks, and various non-profit organizations.
These entities must submit annual financial statements within 60 days of board approval and adhere to regulatory reviews. However, ongoing debates surround the council’s authority to designate additional entities as PIEs, raising concerns about the broad discretionary powers it holds.
In comments about PEBEC’s mission, Ms. Audu highlighted the agency’s efforts to enhance transparency and efficiency in government services for businesses. She cited significant improvements within Nigeria Customs Service in streamlining cargo clearance procedures, and acknowledged progress by other agencies in implementing business-friendly reforms.
