THE NIGERIAN POLICE TRUST FUND ACT, 2019
This act seeks to establish the Nigeria Police Trust Fund for the purpose of training, provision of security equipment, and related facilities as well as enhancing the skills of personnel of the Nigerian Police; and for related matters. The Trust Fund is to operate for six years and can be extended further by Act of National Assembly if need be.
Composition of the Fund
Section 4(1)(b) of the Act provides for various sources of funding for the Trust Fund, including:
- An amount constituting 0.5% of total revenue accruing to Federation Account
- A levy of 0.005% of the net profit of companies operating business in Nigeria
- Any take-off grant and special intervention fund as may be provided by the Federal, State and Local Government of the Federation
- Such money as may be appropriated to meet the objective of this Act by the National Assembly in the budget
- Aids, grants and assistance from international bilateral and multilateral agencies, non-governmental organization and the private sector
- Grants, donations, endowments, bequests and gifts, whether of money, land or any other property from any source
- Money derived from investment made by the Trust Fund
Objective of the fund
The NPTF Act establishes the Nigeria Police Trust Fund (“the Trust Fund”) to receive funds from various sources, which will be utilized:
- For meeting the training and recruiting and re-training need of the personnel of the Nigeria Police Force and its auxiliary staff within and outside Nigeria
- For the enhancement of the skills of the personnel of the Nigeria Police Force and its auxiliary staff for improved proficiency in the use of operational equipment and machinery
- For the overall improvement, performance and efficiency in the discharge of the duties and responsibilities of the Nigeria Police Force
- For the purchase of equipment, machinery, including operational vehicles for the Nigeria Police Force
- For the construction of police stations, provision of living facilities, such as quarters or barracks for the Nigeria Police Force
- To finance the procurement of books, instructional materials, training equipment for use at Police Colleges and such other similar training institutions
- To meet the cost of participation by the personnel of the Nigeria Police Force at seminars and conferences relevant to, or connected with, policing or intelligence gathering and
- For such other purposes incidental to, or connected with, the attainment of objective of this Act.
Functions of the Trust Fund
The Trust Fund shall:
- Receive all money accruing to it under this Act
- Utilize all money accruing to the Trust Fund under this Act to meet the stated objective of this Act
- Carry out such other activities considered necessary for the attainment of the objective of this Act.
Potential implementation challenge
- There are no provisions in the NPTF Act for: the body that will be responsible for collection of the levy, the due date of remittance of the levy, whether the levy would be payable on demand or by self-assessment, and penalty for noncompliance.
- “Net profit”, as the basis on which the contribution is to be made, is not defined in the NPTF Act, which could give rise to different interpretations. For instance, net profit could be computed using a company’s profit before interest, taxes, depreciation and amortization, profit before tax, or profit after tax.
- Also, provision for resolution of conflict in case a company reject or disagree with the amount of levy imposed on it was left out.
Conclusively, Nigerians are patiently waiting for the improvement of the NPTF Act to take care of all the loopholes and provide a standard regulations and payment system to ease the interpretations and implementation of the Trust Fund.