In the last few years, businesses, ranging from limited
liability companies to companies limited by guarantee (charitable
entities etc.) have received a bill from the Governing Council of
the Industrial Training Fund ("ITF") demanding a payment
to the Industrial Training Fund (the "Fund") of the ITF
Levy.
The ITF was established under the ITF Act of 1971 (the
"Act") to encourage the acquisition of skills in industry
and commerce in Nigeria. This was with a view to generating a pool
of resources to meet the needs of Nigeria's economic
development. In its initial form, the Act required every employer
with 25 or more employees, to pay 1% of their annual payroll to the
Fund. In instances where the ITF (under the Act in its initial form
and even after amendment) was/is unable to determine an
employer's total annual payroll, it uses a
"best-of-judgment" mechanism to determine the extent of
liability.
