The Financial Reporting Council of Nigeria (Amendment) Act 2023 (the “Amendment Act”) made several changes to the Financial Reporting Council of Nigeria Act 2011. One of its amendments is a new Section 33 which provided that the Financial Reporting Council of Nigeria (FRC) must maintain a fund into which shall be paid all incomes accruing from annual levies/dues charged from every registered professional, not less than N5,000.00 annually. The Amendment Act empowers the FRC to maintain a fund into which all monies accruing from annual dues, payable by registered professionals, registered firms, public interest entities (PIEs), other entities as prescribed by FRC and approved by the supervising minister, must be paid.
The Amendment Act also introduces due dates for the payment of the levies. For professionals, there is a 60-day payment window beginning on January 1st of every year. The payment window for PIEs is based on market capitalization and turnover thresholds, with a 120-day payment period following their respective financial year-ends.
The Amendment Act further provides that any default in paying the annual fees or levies will attract a 10% penalty of the unpaid amount per month of default or sanctions as prescribed by the FRC.
In conclusion, the Amendment Act has instituted an annual dues regime for the individuals, and entities listed above, with stipulated time periods to pay the dues and penalties for late payments. The FRC has commenced since early January 2024 the issuance of demand notices for unpaid dues/levies dating back to 2012 to the registered professionals, firms and entities.
Authors: Oghogho Makinde | Chizoba Ezeadi | Abisola Onadipe