By Levinus Nwabughiogu-Abuja
House of Representatives yesterday resolved to set up an Ad-hoc Committee to investigate the level of compliance of Ministries, Departments and Agencies (MDAs) of the Federal Government and Corporate bodies with the Industrial Training Fund Act and other encumbrances affecting the success of the Scheme from 2010 – 2023.
The resolution followed the consideration of a motion titled “Need to Investigate the Compliance of Ministries, Departments and Agencies of Government and Corporate Bodies with the Industrial Training Funds Act and the Underperformance of the Funds in the Last Twelve Years” presented at Thursday plenary by Hon. Taofeek Ajilesoro.
Presenting the motion, the Ajilesoro noted that “Section 6 (1) and (3) of the Industrial Training Fund Act provides that “Every employer having either five 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 cent of his total annual payroll”, (3) any liable organization, public or private including companies situated 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 the provisions of
section 6 (l)-(3) of this Act”.
The lawmaker also noted that Section 8 (1) and (2) provided that “All employers who pay their annual training levies (a) shall, at all times, provide adequate training for their indigenous staff improve on the skills related to their job and evidence of such training shall be forwarded to the Fund; (b) shall accept students for industrial attachment purposes. (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”.
He added that “Industrial Trust Fund aims to generate a pool of indigenous trained manpower sufficient to meet the needs of the economy and to stimulate National Industrial growth and development by providing direct training, vocational and apprentice training, research and Consultancy Services and the Student’s Industrial Work Experience Scheme (SIWES)”.
He further expressed concerns that preceding Boards and Management of the ITF in the last decade have complained of inadequate funds to execute its programmes due to impediments in obtaining contributions, especially from public institutions and organizations, alleging inconsistencies in remittance and most cases outright non-remittance of funds by MDAs of the government and most corporate bodies.
“The former Secretary to the Government of the Federation had issued several
circulars to Ministries, Departments and Agencies of the Government, mandating them to comply with the provisions of the Industrial Training Funds Act, yet most Parastatals are still in default while some claimed not to have received the circulars.
“Reports from various sources show that the ITF has consistently underperformed and the skill gap and shortage in the nation’s economy are evident in the fact that in the last ten years, many Nigerians have resorted to expatriates from East Asia and neighbouring countries to undertake their technical and even menial jobs in building, construction and industrial sectors thus the rate of unemployment keeps increasing with attendant consequences on our nation’s security and economy despite the initiative and emphasis by the Federal Government”, Ajilesoro said.
Adopting the motion, the House gave the committee 6 weeks within which to conclude the investigation and report back for further legislative action.
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