The House of Representatives on Thursday unveiled plans to investigate the level of compliance of Ministries, Departments and Agencies of Government and Corporate Bodies with the Industrial Training Funds (ITF) Act and the underperformance of the Funds in the past 12 years.
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Taofeek Ajilesoro.
In his lead debate, Hon. Ajilesoro said: “The House notes 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 N50 million 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 House also notes that Section 8 (1) and (2) provide 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.
“The House is aware that the 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).
“The House is concerned 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 Ministries, Departments and Agencies of the Government and most corporate bodies.
“The House is also concerned that 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.
“The House is disturbed that 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,” he said.
In his intervention, the former Chairman, House Committee on Rules & Business, Hon. Abubakar Fulata observed that the Standing Rules provide that the timeframe for the investigation should be not more than 4 weeks.
To this end, the House mandated the Ad-hoc Committee (when constituted) to report back within 4 weeks for further legislative action.
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