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REQUIREMENTS AND PROCESS FOR ISSUANCE OF PENCOM ,NATIONAL SOCIAL INSURANCE TRUST FUND (NSITF) AND INDUSTRIAL TRUST FUND (ITF) COMPLIANCE CERTIFICATES IN NIGERIA

The economic system of Nigeria being a blend of Government and private participation calls for synergy between both partners in progress to formulate a course of action that will ensure the best-qualified contractors, firms and companies in line with the Public Procurement Act (PPA) 2007 secure the right or license to implement Government projects that best suits public interest.

On the strength of the above premise, it will be pertinent to take an in-depth look at the requisite documents and processes expedient to the issuance of a Pencom, NSITF, and ITF Compliance certificates in Nigeria.

PENCOM COMPLIANCE CERTIFICATE

  1. A copy of the certificate of incorporation and evidence of FIRS Taxpayer Identification Number (TIN). These two documents accompany a Letter requesting for an employer code from PENCOM. The employer will submit the above-listed documents to a Pension Fund Administrator (PFA) who will forward the criteria to PENCOM for the issuance of an employer code.
  2. Once the employer code is issued, the employer (who has more than 15 personnel) will be mandated to register at least 3 staff of the company with the PFA for a monthly pension contribution at the rate of a minimum of ten percent (10%) by the employer and eight percent (8%) by the employee making a total of eighteen percent (18%) pension contribution. The evidence of the Monthly pension contribution will be provided by the PFA for presentation to PENCOM.
  3. After concluding with the PFA, an application will formerly be made to PENCOM for the issuance of a compliance certificate which will be accompanied by a certified list of employees of the organization and their Monthly rate of pension contribution as at the end of the last fiscal year. The certification is best done by at least two directors of the company to establish its authenticity.
  4. Last but not least, is an evidence of a current Group life insurance policy for a minimum of 3 staff specifying the sum assured

NATIONAL SOCIAL INSURANCE TRUST FUND COMPLIANCE CERTIFICATE

Below are indispensable for an application for the Certificate:

  1. The employer/company will be expected to signify their intention to secure the compliance certificate by making a request on its letterhead paper to the Fund. And the letter will be accompanied by the following documents:
  2. A copy of the Certificate of Incorporation issued by CAC
    Completed ECS RE 01 Registration Form, payroll Form RE 03, and the 10 digit Registration Number issued to the employer upon registration with the Fund.
  3. A copy of the NSITF receipt showing evidence of payment through remita.net. 

It is important to note that the assessment of the liability of the employer subject to the issuance of an NSITF Compliance certificate is 1% of 5 staff total salary for the Number of months applicable to an applying employer/company.

 INDUSTRIAL TRUST FUND CERTIFICATE (ITF)

The following are essential for registering an employer for an ITF compliance certificate:

The process of registering a new employer for an ITF compliance certificate is as follows:

  1. The Prospective Employer can download ITF Form 7A (Employer Registration and Payment of Training Contribution Form) from ibechidoassociates.com/download-legal-documents/ complete it and present it for submission at the nearest ITF area office along with
  2. A copy of the company’s certificate of incorporation issued by the CAC
  3. Certified True Copy of the Company’s Audited Account
  4. A Copy of the Company’s Tax Clearance certificate.
  5. At the ITF area office, a Revenue inspectorate and compliance officers will evaluate and assess the liability of the company based on the total annual payroll contained in the Company’s Audited Account.
  6. The subsequent step will be for the company to generate an RRR based on the assessment of the officer through the Remita platform and make payment at any Bank for Training contribution.
    After payment is made, the company is expected to return the Remita payment receipt and the duplicate teller from the Bank to the ITF office. A Hard copy receipt and an Acknowledgement letter will then be issued as a final confirmation of Payment of Training Contribution.
  7. At this stage, the ITF Area Office will then forward the employer’s details as contained in the ITF Form 7A to Headquarters’ Revenue Inspectorate and Compliance Department for issuance of ITF National Number.
  8. The ITF National Number will then be sent to the Area office for scripting and issuance of a Certificate of Compliance which serves as evidence of compliance with the ITF Act.

In conclusion, the tripartite nature of this application is centred on the fact that they are indispensable for any application for submission of a tender/expression of interest to execute a Government contract and on that basis has to be treated concurrently.

Okpi, Ibe Chinedu is the Principal Partner in the Law Firm of Ibe, Chido, and Associates (www.ibechidoassociates.com), with extensive knowledge in Corporate and Commercial Law Practice. He can be contacted via phone: 07069279374 or email: info@ibechidoassociates.com.

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