The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed its concern over the recent amendments to the Financial Reporting Council of Nigeria (FRCN) Act 2023, noting that the new payment structure for annual returns will hurt businesses and could discourage investment in the country.
The association, in a letter to the FRCN on its observations on the Council’s amendment Act 2023, raised objections to the revised financial obligations introduced by the amended legislation, particularly on its potential impact on non-quoted public interest companies.
Under the amended law, companies are now mandated to pay annual dues based on a percentage of their annual turnover, as opposed to the old financial accounting regime, which capped the payment at a maximum of N1 million.
In a statement issued by the association’s Head of Operations, Gbolahan Awonuga, the ALTON highlighted Section 33(1)(d) of the Act, which mandates private companies to comply with the new payment structure.
It lamented that despite formally communicating its observations on the amended law to the FRCN to seek clarifications and request a review of the policy, the Council did not respond to the concerns raised in the letter, but allegedly resorting to issuing threats to enforce compliance.
The ALTON lamented: “These demands are making investment difficult in the country.”
The association urged all stakeholders to review the amended Act’s potential negative impact on the business environment with a view to seeking for its amendment as may be desirable for the nation’s economic growth.