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The short answer
Both are employer-only levies on a Nigerian payroll. NSITF says every registered employer pays 1% of total monthly payroll into the Employees' Compensation Scheme. The ITF levy is 1% of annual payroll for employers with five or more employees, or fewer than five with turnover of NGN 50 million or more (ITF Amendment Act 2011, as summarised by TNP). The employer of record in Nigeria, usually your subsidiary or an EOR, registers and pays.
Who the employer is decides who registers
NSITF and ITF registration attaches to the employer of the Nigerian staff. For a UAE company, that depends on structure:
- Nigerian subsidiary: the subsidiary is the employer and registers with both bodies.
- Employer of record: the EOR's Nigerian entity is the employer; ask it to confirm, in writing, that it registers and pays for your staff and whether the cost is in its fee. See employer of record in Nigeria.
- UAE company employing directly with no Nigerian entity: the position is less clear, and so are the registration routes for an employer without a CAC number. Take Nigerian advice before assuming you are outside both schemes.
Neither is a tax on the employee. Nothing is deducted from pay; both are costs on top of salary.
NSITF: the Employees' Compensation Scheme
NSITF's services page describes the Employees' Compensation Scheme under the Employees' Compensation Act 2010, funded by a contribution of 1% of total monthly payroll from every registered employer. Registration and payment run through the Employer Self-Service Portal, there is a one-time onboarding fee (the page does not give the amount) and a certificate of compliance is issued and renewed for a payment. The scheme pays compensation for work-related injury, disease and death; the page cites disability benefit of 90% of remuneration.
The services page does not give a monthly due date or a penalty for late payment. Ask NSITF or your payroll provider for the current due date, and treat it as a monthly obligation in your calendar.
ITF: the training levy
TNP's Mondaq note (17 February 2020) summarises the ITF (Amendment) Act 2011: employers with five or more employees, or fewer than five with annual turnover of NGN 50 million or more, pay 1% of annual payroll. The Federal High Court has held the levy is a contribution rather than a tax, the same note says.
LawCare Nigeria's procedure guide (14 September 2019) describes a new employer registering with Form 7A at an ITF Area Office, an existing employer filing Form 5A, paying through the ITF Pay-Portal or Remita, and receiving a Compliance Certificate. It gives the payment deadline as not later than 1 April of the following year, and penalties for false returns of NGN 500,000 for a first offence and NGN 1,000,000 for later ones. It also notes the certificate is needed for expatriate quota, customs and government contracts. These secondary summaries are older; confirm current forms and dates with ITF.
A worked example (illustrative)
A UAE software company's Lagos subsidiary has eight employees with a total monthly payroll of NGN 6,000,000, constant through the year.
| Levy | Base | Rate | Amount |
|---|---|---|---|
| NSITF | Monthly payroll NGN 6,000,000 | 1% | NGN 60,000 a month (NGN 720,000 a year) |
| ITF | Annual payroll NGN 72,000,000 | 1% | NGN 720,000 a year, by 1 April following |
Check: 6,000,000 x 12 = 72,000,000; 1% of 72,000,000 = 720,000; 1% of 6,000,000 = 60,000, and 60,000 x 12 = 720,000. What counts as payroll (basic only, or including allowances) affects the result; confirm the definition each body uses before you file.
If an employer of record runs your payroll
Most UAE companies with one or two Lagos hires use an employer of record, and in that case NSITF and ITF should already be handled. Do not assume it. Ask the EOR three questions: is your worker included in its NSITF monthly payroll declaration, does its ITF return include your worker's pay, and is either cost passed through to you on top of the monthly fee. Ask for its current NSITF and ITF compliance certificates, too. If your worker is injured at work, a claim runs through the scheme the EOR has paid into, so the answer matters to the employee as well as to you.
Why compliance certificates matter
Beyond penalties, the certificates are practical documents. An example federal tender from the Nigerian Communications Commission in 2023 asked bidders for ITF compliance (five or more staff or turnover of NGN 50 million or more) and NSITF clearance alongside tax and pension clearance. If your Lagos entity plans to sell to government or large corporates, expect the same request.
What to check first
- Confirm who the legal employer of each Nigerian worker is.
- Register on the NSITF portal and with the ITF Area Office if your Nigerian entity is the employer.
- Put NSITF on the monthly payroll calendar and ITF on the annual one, with 1 April as the ITF date to confirm.
- Keep payment evidence and the certificates in the subsidiary's statutory file.
- Read the wider picture of Nigerian payroll deductions in NHF, NSITF and ITF explained.
Where Pryme fits
A Pryme Business Account holds naira for the subsidiary's statutory payments alongside dollars, and payroll runs the monthly salary file. The Compliance agent can keep the NSITF and ITF dates in a calendar and prepare each payment for a person to approve.
Questions people ask
What is the NSITF contribution rate?
NSITF's services page states 1% of total monthly payroll, paid by every registered employer under the Employees' Compensation Act 2010.
Who must pay the ITF levy?
Employers with five or more employees, or fewer than five with turnover of NGN 50 million or more, pay 1% of annual payroll, as TNP summarises the 2011 amendment.
Does a UAE company with no Nigerian entity pay NSITF and ITF?
The employer of the Nigerian staff registers. If you use an EOR, it is usually the EOR; if you employ directly with no entity, take Nigerian advice.
Are NSITF and ITF deducted from salary?
No. Both are employer-only costs paid on top of pay.
Sources
- NSITF: Services · accessed Oct 2026
- 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 ITF (14 Sep 2019) · accessed Oct 2026
- Nigerian Communications Commission: invitation to tender (2023) · 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.