ITF Levy Form (Nigeria)

An ITF Levy Form in Nigeria organises the details a party must supply for the purpose it serves.

Under the ITF (Amendment) Act 2011 enacted by the National Assembly, every employer who employs five or more persons, or whose annual payroll expenditure reaches or exceeds NGN 50 million, is required to pay an ITF levy of 1% of its annual payroll — defined as total emoluments paid to employees in the preceding year, including basic salary, housing allowance, transport allowance, meal subsidy, overtime, and all other cash benefits. The levy is assessed on the employer's total payroll expenditure and remitted to the Industrial Training Fund through designated banks or the ITF's online portal.

The ITF (Amendment) Act 2011 introduced a reimbursement scheme allowing levy-paying employers to reclaim up to 50% of the levy paid, provided the employer has implemented approved training programmes for its employees during the assessment year and submitted the required evidence of training expenditure to the ITF area office in the relevant state. Approved training programmes must meet ITF's standards and must be registered with the ITF before commencement. Employers who fail to pay the ITF levy within the prescribed period are liable to pay a penalty of 5% of the unpaid levy per month under the ITF Act enforcement provisions.

The Federal Inland Revenue Service (FIRS) and the ITF coordinate levy enforcement through the Companies Income Tax Act framework — ITF levies paid by companies are deductible expenses for Companies Income Tax purposes under Section 24 of CITA. The ITF maintains 22 area offices across Nigeria's geopolitical zones, and employers must file their ITF levy returns with the area office having jurisdiction over their principal place of business.

The legal framework governing the ITF Levy Form (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a ITF Levy Form (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies and Allied Matters Act (CAMA) 2020 sets the foundational requirements.

An ITF Levy Form is needed by every employer in Nigeria that meets the statutory threshold under the ITF (Amendment) Act 2011.

An ITF Levy Form is required annually by every Nigerian employer with five or more employees on its payroll — whether full-time, part-time, or contract staff on the employer's payroll — to calculate and remit the 1% levy on total annual payroll expenditure to the Industrial Training Fund.

An ITF Levy Form is needed by every Nigerian employer whose annual payroll expenditure — including all salary, allowances, bonuses, and benefits paid to employees — equals or exceeds NGN 50 million, regardless of the number of employees, to comply with the ITF (Amendment) Act 2011 threshold introduced for larger employers.

An ITF Levy Form is required by multinational companies operating in Nigeria through a subsidiary registered with the Corporate Affairs Commission (CAC) under CAMA 2020, when computing and remitting the ITF levy based on the payroll of their Nigerian-employed staff.

An ITF Levy Form is needed by employers who wish to apply for reimbursement of up to 50% of the ITF levy paid, by documenting training expenditures incurred during the year on ITF-approved training programmes — the reimbursement application is attached to the levy form submission at the relevant ITF area office.

An ITF Levy Form is required by companies seeking clean tax clearance certificates from the FIRS, as evidence of ITF levy compliance is part of the due diligence checks conducted by many contracting entities — including government agencies under the Public Procurement Act 2007 — when evaluating vendor qualification.

Parties in Nigeria should prepare a ITF Levy Form (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A complete ITF Levy Form for Nigeria must contain the following essential elements under the ITF Act and ITF administrative requirements.

Employer Identification: Full legal name of the employer, RC number issued by the CAC under CAMA 2020, registered office address, state of principal operations, ITF employer registration number (issued upon first registration with the ITF), and Tax Identification Number (TIN) issued by FIRS.

Assessment Year: The calendar year or financial year to which the levy relates. ITF levies are assessed annually and must be remitted within 60 days of the end of the employer's financial year.

Payroll Computation: Total gross payroll expenditure for the assessment year in NGN — the sum of all emoluments paid to employees including basic salary, housing allowance, transport allowance, medical allowance, meal subsidies, overtime, annual bonuses, and performance awards. Only amounts paid to individuals on the employer's payroll are included; payments to independent contractors and consultants are excluded.

Levy Calculation: The ITF levy amount computed as 1% of the total gross payroll. The form should show the calculation clearly: Total Payroll (NGN) × 1% = ITF Levy Payable (NGN).

Training Expenditure Declaration: A declaration of training expenditure incurred during the assessment year on ITF-approved programmes, for purposes of the 50% reimbursement claim. Supporting documents include ITF programme approval letters, training attendance records, and payment receipts.

Reimbursement Claim: The amount claimed as reimbursement (maximum 50% of levy paid), with supporting training expenditure documentation attached.

Payment Details: Bank payment reference, date of remittance, and name of receiving bank. ITF-approved receiving banks include First Bank of Nigeria, Zenith Bank, GTBank, and UBA.

Authorised Signatory: Signature and title of the company officer authorising the levy payment — typically the CFO, Finance Director, or Company Secretary under CAMA 2020, Section 330.

Additional compliance elements for a ITF Levy Form (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.