ADVERTISEMENT

5 key highlights from the Nigeria Police Force Trust Fund – a new levy that seeks to take a certain portion from every company's net profit

Nigerian Police
  • Nigerian government creates a fund to cater for the affairs of Police Force in the country.
  • For a business with a net profit of N2 billion in a year, it will pay a levy of N100,000.
  • Business Insider SSA looks at five key details from the Nigerian Police Force Trust Fund.

In June 2019, President Muhammadu Buhari signed the Nigeria Police Force Trust Fund into law.

ADVERTISEMENT

The fund will create additional sources of revenue for the Nigerian security agency.

According to the document, the fund will operate for an initial period of 6 years from the commencement and may be extended for an additional period.

Here are the 5 things you need to know about the Nigerian Police Force Fund:

  • The federal government, through the Federation Account Allocation Committee (FAAC), will contribute 0.5% while businesses operating in Nigeria pay a levy of 0.005% out of their net profits.

For a business with a net profit of N2 billion in a year, it will pay a levy of N100,000 (which is 0.005% of the sum).

  • The money will be deposited into an investment income account. The income generated from the fund is exempt from income tax.
  • The fund will be used to purchase equipment and machinery, construct police stations and provide living facilities including quarters or barracks for the police officials.
  • It will also cater for training and retraining of police officers for intelligence gathering and other security activities.
  • A board will be established to administer the fund, making investment decisions, control and provide the legal framework for the management and control of special interventions. The affairs of the fund will be in the custodian of the Ministry in charge of Police Affairs and chair by the Minister as well as other members.

In a note, experts at PwC Nigeria said the “earmarked taxes could create concerns around the stability of the tax regime in Nigeria.”

They advised that, although funding of the police and improving security is a priority issue, it could be funded through more allocations from already existing revenue streams.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Sanwo-Olu impregnated my mother in 1994 - Delta man claims he's gov's son

Sanwo-Olu impregnated my mother in 1994 - Delta man claims he's gov's son

Fake soldier arrested at Burma Camp while trying to fly military plane to Tamale

Fake soldier arrested at Burma Camp while trying to fly military plane to Tamale

Davido reportedly set to perform at World Cup closing ceremony

Davido reportedly set to perform at World Cup closing ceremony

12 Nigerian celebrities and who they are supporting in the 2023 presidential elections [Pulse List]

12 Nigerian celebrities and who they are supporting in the 2023 presidential elections [Pulse List]

Labour Party’s women leader assassinated in Kaduna State

Labour Party’s women leader assassinated in Kaduna State

How to get your crush without shooting your shot

How to get your crush without shooting your shot

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

Burna Boy set to drop documentary for single, 'Whiskey'

Burna Boy set to drop documentary for single, 'Whiskey'

Celine Dion discloses battle with rare neurological disorder, postpones European tour

Celine Dion discloses battle with rare neurological disorder, postpones European tour

ADVERTISEMENT
ADVERTISEMENT