Industrial Training Fund is one of the key compliance requirements for artisans and those who engage in vocational services. In this guide, I will walk you through the procedure for ITF registration in Nigeria and the cost requirements to get started.
What is ITF in Nigeria?
ITF simply means Industrial Training Fund. It is a Federal Government Parastatal under the Federal Ministry of Industry, Trade and Investment.
The training scheme was established as far back as 50 years ago and is saddled with the responsibility of promoting and encouraging the acquisition of industrial and commercial skills required for national economic development.
Functions of ITF in Nigeria
The Industrial Training Fund Serves the following roles in Nigeria;
- To encourage the acquisition of skills in industry and commerce with a view to generating a web of indigenous trained manpower to serve in both government and private sector
- Provide training for skills in Management for technical and entrepreneurial development in the public and private sectors of the economy;
- Set training standards in all sectors of the economy and monitor adherence; and evaluate and certify vocational skills acquired by apprentices, craftsmen and technicians in collaboration with relevant organizations;
- Provide facilities for training of persons employed in industry and commerce;
- Approve courses and appraise facilities provided for training by other bodies, particularly in industry and commerce;
- Ensuring all standards set by the ITF are met and apprentices are well-trained into professionals
- Assist individual persons of corporate organizations in finding training facilities for employers in industry and commerce
Introducing The ITF – SUPA Initiative
Just recently, the ITF through one of its innovative programs have established a Skill-Up Artisans (SUPA) which is a program for empowering artisans and intending artisans in Nigeria with skills and certifications.
This program is aimed at empowering artisans with tech-driven training, official licensing, access to essential toolkits and promoting industry standards to elevate skills, enhance craftsmanship and drive professional excellence across sectors.
This program is aimed to cater for the over 200 million populations of Nigeria and making them future ready for demands in the technical and vocational skill world
About The ITF Compliance Certificate
Just like other compliance documentations like BPP, PENCOM and NSITF, the Industrial Training Fund (ITF) compliance certificate is a vital document.
Companies in Nigeria that wants to enter into contractual agreements with the government must secure this certificate
The certificate does not only provide contract opportunities but also ensures that such company is catering for its employees in the best way possible.
With the rise in company formations in Nigeria and the evolution of tax laws, compliance is going to be a big stuff heading into the new year.
Personally, I have been advising businesses to ensure they are compliant in their respective industries.
From filing annual returns to securing EFCC Certificate to doing NAFDAC and all industry permit.
Just do everything possible to stead ahead of the game.
Why ITF Compliance Certificate is Important for Companies
- It breeds Government trust and accountability
- Good reputation and goodwill while doing business with both private and public sectors
- With the certificate, companies are open to greater business opportunities, grants, and collaborations.
- Companies with 5 or more employees or an annual turnover of ₦50,000,000 and above are required to register and obtain the certificate, as it helps them secure government support.
Who Must Register with ITF?
- Companies who wish to engage in government contracts
- Companies who wish to engage in skill acquisition program
- Companies engaging in SIWES industrial training programs
- Companies into research and development
ITF Compliance Certificate Registration Requirements
The following documents are required by employers of labor to submit to the Industrial training Fund body to successful process the registration
- CAC Certificate
- CAC Status Report
- Memorandum and Article of Association (MEMART)
- Company TIN
- Contact details of employer
- Nature of business
- Staff strength
- Company profile
- Utility bill
- Audited accounts prepared by an accountant
- Tax clearance certificate
How to Register for ITF in Nigeria: Get Certificate
The process to register and obtain an ITF certificate in Nigeria is very straightforward.
You can download ITF employer registration form online and fill it. However, the online process may get you to a dead end. So you need the services of a compliance expert.
- Visit the ITF registration portal or the nearest area Office
- Submit all the relevant documents mentioned above
- Proceed with the verification process
- Pay the ITF Training contribution
- Wait for approval and insurance of your ITF registration certificate
Legacy Benjamin Consult remains the one of the best corporate consulting firm and compliance experts in Nigeria.
You can send us a DM on WhatsApp @ 08066108299 to process your ITF registration without stress.
With our direct contact with the ITF office, just relax and let us get the job done.
Cost of ITF Registration in Nigeria
The cost to register for ITF and obtain a certificate in Nigeria can be highlighted into the following
- Cost of preparing an audited financial statement ranges from ₦150,000 to ₦300,000 (depending on the complexity of transactions)
- Companies with less than 5 employees will be required to pay a fixed fee of ₦10,000 for ITF compliance.
- Penalty fees for non-compliance is 5% of the amount
- ITF compliance will be 1% of total annual salaries of employees
- Professional fees with variation from ₦80,000 to ₦200,000
How to Calculate the ITF 1% Training Contribution
Let’s say
Number of Staff: 12
Total Annual Basic Salary Paid to All Staff: ₦12,400,000
ITF Contribution Formula:
ITF Contribution = 1% × Total annual basic salary of staff
Calculation:
1% × ₦12,400,000 = ₦124,000
Amount Payable to ITF:
₦124,000 per year
Penalties for Not Registering with ITF
ITF maintains a strict compliance regulation and punishes non-compliance. Companies that are eligible for registration but fail to comply will face fines, fines, imprisonment for company officers, and potential exclusion from government contracts.
The body imposes a 5% fine on the unpaid amount if not remitted on time.
Other fines includes
- A fine of ₦500,000 in the first month of offense, and ₦1,000,000 for each subsequent breach for companies
- Meanwhile, Chief Executive, Secretary or other Principal Officers of the company, a fine of ₦50,000 or 2 years imprisonment for a first offense and 3 years imprisonment without option of fine for each subsequent offense.
FAQs on ITF Registration and Certification in Nigeria
Q: What is ITF registration in Nigeria?
A: ITF registration is the mandatory enrollment of companies with the Industrial Training Fund for workforce training and compliance.
Q: Who must register with ITF?
A: Any company operating in Nigeria with 5 staff or more or has an annual turnover of over ₦50,000,000 must register and remit to the fund annually.
Q: How much does it cost to register for Industrial Training Fund in Nigeria?
A: Aside the annual contribution, the cost of registration costs about ₦300,000
Q: How is the ITF 1% Training Contribution calculated?
A: 1% of annual salary of all employees combined
Q: What documents are required for ITF employer registration?
A: CAC documents, TIN, staff details, business address, TCC and company profile.
Q: How long does ITF registration take?
A: 7 to 10 working days under stable working conditions
Q: What is the difference between ITF registration and ITF Compliance Certificate?
A: Registration is the first step; the Compliance Certificate is issued annually to companies that have paid their ITF contributions.
Q: Can I register for ITF online?
A: Yes. Visit the ITF online registration portal or contact Legacy Benjamin Consult for a smooth and easy registration process 08066108299
Q: What happens if my company does not register for ITF?
A: Possible penalties and may be denied government contracts or bids.
Conclusion:
The ITF was introduced as a tool for empowering artisans with tech-driven training, and essential skills top thrive in the competitive market.
If you need further assistance in getting your ITF registration and certification done, and you have all the necessary documents, kindly send a DM.
Feel free to also leave a comment.
