INDUSTRIAL TRAINING FUND ACT

(1) There is hereby established a fund to be known as the Industrial Training Fund (in this Act referred to as "the Fund") into which shall be paid-
(a) all contributions prescribed by this Act; and
(b) such sums as may be provided for that purpose by the Federal Government.
(c)
funds provided by the Federal Government for the students Industrial Work
Experience Scheme: Provided that such fund shall be channelled through
its parent Ministry
[1990 No. 44.]

The Fund shall be utilized to-
[1973 No. 37.]
(a)
provide, promote and encourage the acquisition of skills in industry and commerce with a view to generating a pool of indigenous trained manpower sufficient to meet the needs of the private and public sectors of the economy ;
(b)
provide training for skills in management for technical and entrepreneurial development in the public and private sectors of the economy;
(c)
set training standards in all sectors of the economy and monitor adherence ; and
(d)
evaluate and certify vocational skills acquired by apprentices, craftsmen and technicians in collaboration with relevant organizations."

(1) There shall be, for the purpose of administering the Fund in accordance with the provisions of this Act, a body to be known as the Industrial Training Fund Governing Council (in this Act referred to as "the Council") .
(2)
The Council shall be a body corporate with perpetual succession and a common seal.
[1976No.14.]
(3)
The provisions of the Schedule to this Act shall have effect with respect to the constitution of the Council and its proceedings and the other matters therein contained.
[Schedule.]

(1) The Council shall have power-
(a) to provide or secure the provision of such courses and other facilities (which may include residential accommodation) for the training of persons employed or intending to be employed in industry or commerce as may be required, having regard to any courses or facilities available to such persons;
(b) to approve such courses and facilities provided by other persons;
(c) from time to time, to consider the employments in industry or commerce as appears to require special consideration and publish recommendations with regard to the nature and length of the training for any such employment and the further education to be associated with the training, the persons by and to whom the training ought to be given, the standards to be attained as a result of the training and the methods of ascertaining whether those standards have been attained;
(d) to apply or make arrangements for the application of selection tests and of tests or other methods for ascertaining the attainment of any standards recommended by the Council and may award certificates of the attainment of those standards;
(e)
to assist persons in finding facilities for being trained for employment in industry and commerce;
(f)
to carry on or assist other persons in carrying on research into any matter relating to training for employment in industry and commerce.
(2) The Council shall have power-
(a)
to acquire and hold property whether movable or immovable; and
[1976 No. 14.]
(b) to enter into contracts

(1) The Minister may, with prior approval of the President appoint a fit person to be called the Director of the Industrial Training Fund who shall be the administrative head of the Fund, and, subject to the directions of the Council, shall be responsible-
(a) for the assessment of contributions under this Act and for the collection and payments of moneys into the Fund;
(b) for the payment of all disbursements authorised under or by virtue of this Act;
(c) for accounting for all moneys collected, paid or otherwise expended under this Act;
(d)
for ensuring the achievement of the aims of this Act.
[1990 No. 44.]
(2)
The Council may, from time to time, appoint officers, agents or employees of the Fund to assist the Director-General in the performance of his duties under this Act, who shall be subject to the general control of the Director-General."

(1)
Every employer having either 5 or more employees in his establishment, or having less than 5 employees but with a turnover of N50m and above per annum, shall, in respect of each calendar year and or the prescribed date, contribute to the Fund one per centum of his total annual payroll.
[1973 No. 37.)
(2)
Any supplier, contractor or consultant bidding or soliciting contracts, businesses, goods and services from any Federal Government Ministry, Department, Agency, commercial, industrial and private entity shall fulfill statutory obligations of his employees with respect to payment of training contribution to the Fund."
[1976 No. 14.)
(3)
Any liable organization, public or private including companies situate in the free trade zone requiring approval for expatriate quota and/or utilizing custom services in matters of export and import, must show proof of compliance with this Act in respect of payment of training contribution of his employees and all regulatory agencies of the Federal Government shall ensure compliance with section 6 (1)-(3) of this Act.
(4)
The Ministry may, with the approval of the Federal Executive Council by order published in the Gazette, vary the rate of contribution prescribed in subsection (1) of this section".

(1)
The Council may make a refund of up to fifty per centum of the amount paid by an employer if the Council is satisfied that the training programme of the employer is in accordance with the Fund's reimbursement schemes".
(2) The Council shall notify the Federal Board of Inland Revenue of any refund made pursuant to this Act.

(1)
All employers who pay their annual training contributions-
(a)
shall, at all times, provide adequate training for their indigenous staff with a view to improving on the skills related to their job and evidence of such training shall be forwarded to the council;
(b)
shall accept students for industrial attachment purposes.
[1990 No. 44.
(2) Any employer who is in breach of the provision of subsection (1) of this section
shall be guilty of an offence under this Act and liable on conviction-
(a)
in the case of a body corporate to a fine of #500,000.00 for the first breach and #1,000,000.00 for each subsequent breach; and
(b)
in the case of the Chief Executive, Secretary or other principal officer of the company to a fine of #50,000.00 or two years imprisonment for a first breach and two years imprisonment without option of fine for each subsequent breach.
[1990 No. 44.]

(1) If any contribution is not paid within the time prescribed in section 6 of this Act, a sum equal to five per centum of the amount unpaid shall be added for each month or part of a month after the date on which payment should have been made.
(2)
Notwithstanding the provisions of subsection (1) of this section, the Director-General may if he thinks fit, waive in whole or in part any penalty imposed under this section."

(1)
The Council shall keep proper accounts and proper records in relation thereto, and shall prepare in respect of each financial year a statement of accounts in accordance with the relevant laws of the Federal Republic of Nigeria.
(2)
The Council shall as soon as may be after the end of the financial year to which the accounts relate cause the accounts to be audited by auditors appointed from a list and in accordance with the guidelines prepared by the Auditor-General for the Federation by the Council with the approval of the Minister.
(3) The auditors shall on the completion of the audit of the accounts of each financial year prepare and submit to the Council a report setting out their observations and recommendations on all aspects of the accounts of the Council for that year; and the Council shall forward a copy of the report to the Minister.

(1) Notwithstanding any other provisions of this Act, contribution to the Fund shall be recoverable by action as a debt owing to the Fund at any time within six years from the date when the contribution became due.
(2)
Any action for the recovery of contributions under this section may be instituted by the Council, Director-General, agents or officers of the Fund on behalf of the Director-General, and where the action is instituted in a magistrate's court, any person authorized by this sub-section may appear and conduct the case.
(3)
For the purposes of this section "contribution" includes under payment or for late payment, as the case may be."

A copy of an entry in the accounts of the Fund or other extract from the records of the Fund shall, when certified by the Director-General be received in all courts as prima facie evidence of the truth of the contents thereof and, as the case may be, of the debt to the Fund by any person.
[1976 No. 14.]

If any question of fact arises as to the liability of an employer to pay contributions under this Act, the question shall be determined by the Court.

The Director-General may require any employer to furnish such returns and other information and to keep such records and produce them for examination by or on behalf of, the Director-General as appears to the Director-General to be necessary for carrying out his functions under this Act.
[1976 No. 14.]

(1)
If any employer fails, neglects or refuses to furnish the required returns specified in section 14 of this Act, the Director-General of the Fund or any staff authorised on his behalf shall be and is hereby empowered to assess, according to his best judgment, the appropriate contribution the employer shall pay to the Fund; but such assessment shall not affect the authority of the Director-General or any staff authorised on his behalf to assess the actual amount of the employer's liability when the employer subsequently makes his returns.
(2) Any person who-
(a)
knowingly or recklessly furnishes in pursuance of any requirement under section 14 of this Act, any returns or other information which is false in a material particular; or
(b)
wilfully makes a false entry in any record required to be produced under that section, or with intent to deceive, makes use of any such entry which he knows to be false,
shall be guilty of an offence.
[1990 No. 44.]
(3)
Any person who is found guilty of an offence under subsection (2) of this section
shall be liable on conviction-
(a)
in the case of a body corporate to a fine of #500,000 for a first offence and #1,000,000 for each subsequent offence; and
(b)
in the case of the Chief Executive, Secretary or other principal officer of the company to a fine of # 50,000 or two years imprisonment for a first offence and three years imprisonment without option of fine for each subsequent offence.

"payroll" means the sum total of all basic pay allowances and other entitlements payable within and outside Nigeria to any employee in an establishment, public or private ;
"employees" means all persons whether or not they are Nigerians employed in any establishment in return for salary, wages or other consideration, and whether employed full-time or part-time, and includes temporary employees who work for periods of not less than thirty days;
"contribution" include underpayment and any interest or penalty payable or for late payment, as the case may be ;
"The prescribed date" means-
(a) in respect of year two thousand and eleven, means a date not later than three months from the date of commencement of this Act; and
(b) in respect of every subsequent year, means a date not later than 1st April of the following year."

This Act may be cited as the Industrial Training Fund (Amendment) Act, 2011.