Understanding Industrial Training Fund Process
- 1. Understanding THE INDUSTRIAL TRAINING FUND PROCESS
- 2. THE INDUSTRIAL TRAINING FUND (ITF) PROCESS Mr. Daniel Osolarin Thursday, 11 January, 2018
- 3. Meaning and Objectives of ITF Understand the companies and ITF relationships Understand the compliance principle and process Explain the processes to be followed internally on ITF matters Understanding the calculations involved Today’s Overview
- 5. What is ITF The ITF is a money set aside for human resource development. It is contributed to encourage capacity building for industries and commerce in the Nigerian economy through manpower training. The fund is used to: 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 private and public sectors of the economy; b. provide training for skills in management, technical and entrepreneurial development in the public and private sectors of the economy; The Industrial Training Fund (ITF), is a Human Resource Development Agency of the Federal Government of Nigeria. It is saddled with the responsibility of; c. setting training standards in all sectors of the economy and monitor adherence; d. evaluating and certifying vocational skills acquired by apprentices, craftsmen and technicians in collaboration with relevant organizations.
- 6. Following the amendment of the Act in 2011, ALL employers with over 5 employees or turnover of 50 million and above per annum are required to make a contribution of 1% of their payroll to the fund not later than 1 April of the following year. The scheme provides that not less than 15% of the total work force in an organization must be trained annually before it is qualified for full reimbursement grant. Any organization that trains its workers with evidences such as course fee receipts, certificates of attendance and receipts of levy paid to the ITF could be entitled to reimbursement. Thus, all employers of Labour has been mandated to make this 1% contribution to the fund and failure to comply will lead to severe penalties. How does the ITF and Reimbursement scheme work?
- 8. The Compliance Principle and Process Step One Company Registration o Means of registration o Conditions attached o Effect of registration information Step Two Payment of Contribution o Computation of contribution base on the company’s payroll o Means of payment o Evidence of Payment Step Three Reimbursement o Confirmation of registration o Confirmation/ Evidence of payment o Training documents and evidence
- 9. Time Spent Events Filling & Approval of Training Personnel Reimbursement Process Filling & Approval of Training Plan (TP) Filling & Approval of Trainings in line with TP Collation of Training approvals and evidences Computation, Filling and follow-up for reimbursement Note: This is retrospective in nature as the process must have been observed before payment of contribution to enable reimbursement
- 10. Complied? NO
- 11. The Compliance Principle and Process Step Four Verification o Check on Payroll and Company books of account (Audited/non Audited) o Confirmation with payment o Penalties and Interests Step Five Issuance of Compliance Certificate o Contains details of the Company o Year of compliance Complied Reward of Compliance o Ability to seal government projects o Access to advisory and management consulting services of the ITF o Access to the ITF training facilities and training centres throughout the nation o Access to the ITF resource persons to implement their training programmes
- 13. Resources Industrial Training Fund Website www.itf.gov.ng Industrial Training Fund Act 2011 as Amended