The Nigerian Industrial Training Fund Act 2004 has been amended by the Industrial Training Fund (Amendment) Act 2011.
The Industrial Training Fund is established to utilise contributions to the Fund to “promote and encourage the acquisition of skills in industry and commerce with a view to generating a pool of indigenously trained manpower sufficient to meet the needs of the private and public sectors of the economy.”
Every employer with five or more employees or with an annual turnover of N50Million and above, is obligated by Section 6 of the Industrial Training Fund (Amendment) Act 2011 to contribute one per cent (1%) of its total annual payroll to the Industrial Training Fund as the employer’s contribution to the training of employees in Nigeria.
The mandatory one per cent (1%) ITF contribution must be made not later than the 1st Day of April of the following year.
The Industrial Training Fund Governing Council (“the ITF Council”) may make a refund of up to fifty per cent (50%) of the employer’s contribution to the IT Fund if the ITF Council is satisfied that the training programmes of the employer are in accordance with the ITF reimbursement schemes.
ITF is however required to notify the Federal Board of Inland Revenue Service of any refunds made in pursuance of the provisions of this law as contributions and refunds will ultimately affect the tax obligations of the employer concerned.
The impact of the Industrial Training Fund in the past three decades of its existence remains to be felt in both the private and the public sectors of the Nigerian economy. This is particularly highlighted by the deterioration in the educational standards in Nigeria.
Organised private sector will do well to promote and institutionalise the objectives of the industrial training fund as this will make Nigerian products and brands to be more competitive in the regional and international markets.
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