The Manufacturers Association of Nigeria has raised the alarm over what it described as an “astronomical” annual charge imposed on private companies by the Financial Reporting Council of Nigeria under the recently amended Financial Reporting Council of Nigeria Act.
The Director-General of MAN, Segun Ajayi-Kadir, in a statement on Sunday, warned that the new provisions, particularly those affecting non-listed companies, pose a major threat to the struggling manufacturing sector.
“For publicly quoted companies, the maximum payment earlier was N1m per annum. Now, that amount has been hiked to N25m! Quite incredibly, for non-listed companies, who were previously excluded, there is no cap, and it is linked to the turnover, irrespective of whether the company is profitable or not,” Ajayi-Kadir stated.
Section 33 of the amended Act mandates an annual charge on non-listed companies, pegged at a percentage of their yearly turnover.
Companies with an annual turnover exceeding N10bn could pay as much as 0.05 per cent of their revenue.
