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.

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.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Sadio Mane the odd one out as Bayern Munich stars take team photo with glasses of beer

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022