Sanctions for non-compliance with filings with the Financial Reporting Council of Nigeria (FRCN).

Sanctions for non-compliance with filings with the Financial Reporting Council of Nigeria (FRCN).

June 14, 2019

Public interest entities are required by the FRCN to file Annual Returns, financial statements, finance returns and accounting. This requirement is in compliance with the Financial Reporting Council’s standard and the council is vested with the power to impose sanctions for non-compliance with its rules.

The sanction imposed for non-compliance is clearly stated in Section 64 provides that where a person fails to comply with the financial standard set by the council in accordance with the financial reporting council Act, that person is guilty of an offence and is liable to pay the sum of N10, 000, 000. 00(Ten Million Naira) as a fine or serve a term not exceeding 2years or both. Such a sanction becomes effective if the council brings notice of non-compliance to the persons in charge of such financial statement.

In line with the above, when a notice of non-compliance is given to the person in charge of such financial statement, he/she has 60 days within which the notice is given to restate its financial statement and resubmit same to the council and to any other government department or authority that requires same financial statement. He must also hold a general meeting of its shareholders on the restated financial statement. Failure to comply with the above makes the offender liable on conviction to a fine not exceeding N20, 000, 000.00 (Twenty Million Naira) and restate the Said financial statement within 30days thereafter.

Any professional, auditor or a  person that prepares the financial statement found liable during a review by the council commits an offence and  shall on conviction pay a fine not exceeding N10, 000, 000.00 (Ten Million Naira) or imprisonment for a term not exceeding 2years or both and such a person shall be delisted from the register of professionals by the council.

Where the Council reaches a final decision that a public interest entity has failed to comply with any of its decision under the Act, and with such other financial reporting, accounting, auditing and financial reporting standards as may be specified under the relevant enactments, the Council shall serve a notice on the entity for an immediate restatement of its financial statements. Where a notice is served on the public interest entity, it shall within 60days of the service of the notice, restate its financial statement and resubmit same to the council and the other relevant government department and authority.

In conclusion, any public interest entity or professional accountant or other professionals who disagree with any decision of any of the Directorates may appeal to the Council’s Technical and Oversight Committee.




The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

More Articles


Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • Why must I file Annual Returns?

    It is a mandatory statutory requirement under the Companies and Allied Matters Act to file Annual Returns yearly. 

  • Must my Company Secretary be a Lawyer?

    Although it’s ideal to have a lawyer as a company secretary, it is not compulsory for small private businesses.

  • What will happen if I buy the wrong category of forms with NAFDAC?

    Nothing, the purchased form will be in your account for future use.


  • Do I have to physically drop off my product sample at NAFDAC office?

    No, you can choose to have it sent to NAFDAC office

  • What is share capital?

    The share capital in a private limited company is the amount of money invested by its owners in exchange for shares of ownership.

  • What is a trademark?

    A trademark can be any word, sign, symbol or graphic that you apply to your company, goods or services to distinguish them from those of your competitors; for example, a brand, product or company name, or logo. The trademark serves as a badge of origin for your business and its brands and products, and can consist of words, logos, slogans, colours and shapes, or a combination of all of these.

Call Us Now on +234 901 719 0079 Whatsapp icon Chat on WhatsApp