AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Under the Industrial Training Fund (Amendment) Act 2011, employers with five or more employees, or with fewer than five but an annual turnover of ₦50 million or more, must contribute 1% of their annual payroll to the ITF. New employers register with Form 7A at an ITF Area Office; contributions are paid through the ITF payment portal by 1 April of the following year, and compliant employers who train staff can claim back 50% of what they paid.
Who must contribute
The 2011 amendment widened the net. Before it, only employers with 25 or more employees were caught, according to a February 2020 analysis on Mondaq. Now the Act covers:
- Any employer with five or more employees, whatever its turnover; or
- Any employer with an annual turnover of ₦50 million or more, even with fewer than five employees.
The rate is 1% of annual payroll. Where the ITF cannot work out an employer's payroll, the same article says it uses a "best-of-judgment" assessment, which can be far higher than the real figure. A Federal High Court decision discussed in the article held the payment is a "contribution", not a tax, so arguments that it is an unconstitutional tax have not succeeded.
What goes into "payroll"
The 1% applies to the payroll you declare on your annual return, so the definition matters. The sources we read do not set out a line-by-line definition, and practice can differ between Area Offices on items such as allowances and bonuses. Ask your Area Office in writing what it expects you to include, keep its answer, and declare consistently from year to year. Under-declaring is risky: if the ITF doubts your return, it can fall back on a best-of-judgment figure and you then have to argue it down.
How to register
LawCare Nigeria's September 2019 guide describes the process. Confirm current forms with your nearest ITF Area Office, as procedures may have moved online since then.
- New employers: complete Form 7A and submit it at the ITF Area Office covering your location, with your CAC documents.
- Small new companies (fewer than five staff) seeking a certificate under the concession described in the guide: a letter, the certificate of incorporation and a payment, given as ₦100,000 in 2019. Check today's amount with the Area Office.
- Existing employers each year: file Form 5A (the annual return of staff and payroll), generate a Remita Retrieval Reference (RRR) through the ITF payment portal, pay, then take proof to the Area Office.
The deadline
The same guide gives the payment date as not later than 1 April of the year following the payroll year. For 2026 payroll, that means by 1 April 2027.
Penalties
LawCare's guide records that false returns attract ₦500,000 for a first offence and ₦1,000,000 for subsequent offences, with officers liable to ₦50,000 or two years' imprisonment, and three years without the option of a fine on a repeat. Late or missing returns also expose you to a best-of-judgment assessment.
The 50% training refund
The ITF reimburses part of the contribution to employers who train their staff. ThisDay reported on 8 April 2019 that the ITF had refunded about ₦6.5 billion to 510 employers for the previous year, at 50% of their training contributions as its law provides. The Director-General listed the conditions:
- The full annual contribution was paid.
- The workforce was trained across all cadres, with evidence of the training.
- The employer accepted students on the Students Industrial Work Experience Scheme (SIWES).
- The claim was made within the stipulated period.
Taking SIWES students
SIWES places polytechnic and university students in workplaces for industrial attachment as part of their courses. Accepting them is one of the refund conditions, and it is also a cheap way to find future hires. Plan real tasks and a supervisor for each student, sign their logbooks on time, and keep a list of the students you hosted with their institutions and dates, since you may need it for the refund claim.
Keep training records as you go: attendance sheets, course outlines, trainer invoices and certificates. Claims are much easier with paperwork gathered during the year than reconstructed afterwards.
The compliance certificate and tenders
Once you have paid, the Area Office issues an ITF compliance certificate. LawCare's guide notes it is needed for expatriate quota applications, customs processes and government contracts. Many public and corporate tenders list it among required documents, so a missing certificate can cost a bid. Our guide to expatriate quota shows where it fits for foreign hires.
What to check first
- Count staff and check turnover. Five or more staff, or ₦50 million turnover, means you are in.
- Total your annual payroll, the figure the 1% applies to.
- Visit or call the ITF Area Office for current forms and the payment portal steps.
- Diary 1 April for each year's payment and the refund claim window.
- File the certificate with your other compliance documents.
The ITF is one of several payroll obligations; see NHF, NSITF and ITF and the first payroll checklist.
Where Pryme fits
A Pryme Business Account's Compliance agent can track dates such as the ITF payment and refund window, and prepare the documents list. A person approves any payment above the set ceiling, and each action is recorded.
Questions people ask
Who should pay ITF in Nigeria?
Employers with five or more employees, or with fewer than five but annual turnover of ₦50 million or more, under the ITF (Amendment) Act 2011.
How much is ITF contribution?
1% of the employer's total annual payroll.
When is ITF contribution due?
Practitioner guidance gives the date as not later than 1 April of the following year. Confirm with your ITF Area Office.
Can I get my ITF money back?
Employers that pay in full, train their staff with evidence, accept SIWES students and claim on time can be reimbursed 50% of their contribution, according to the ITF.
Sources
- Mondaq (TNP): The ITF levy, to pay or not to pay (17 Feb 2020) · accessed Oct 2026
- LawCare Nigeria: Procedure for company registration with the Industrial Training Fund (14 Sep 2019) · accessed Oct 2026
- ThisDay: ITF refunds N6.5bn to contributing employers (8 Apr 2019) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.