The Federal Government of Nigeria (“FGN”) has directed the Federal Inland Revenue Service (“FIRS”) to collect and remit the statutory deductions due to the National Agency for Science and Engineering Infrastructure (“NASENI”) pursuant to the National Agency for Science and Engineering Infrastructure Act, Cap N3, Laws of the Federation of Nigeria, 2010 (the “Act”). The mandate of NASENI is specifically in relation to capital goods, research, production, and reverse engineering. NASENI, by its mandate, is designed to conduct developmental work in the areas of manufacturing and as such, it can coordinate the proliferation of technologies developed in Nigeria.
NASENI is to be funded by the NASENI Fund (the “Fund”) set up under the Act which provides, amongst others, for the following funding options: (i) 3% of the total revenue accruing to the Federation Account; and (ii) 0.25% of the turnover of companies and firms with income or turnover of N4,000,000.00 (Four Million Naira) and above.
It is worthy of note that since the enactment of the Act, its funding provisions have not been fully implemented specifically with reference to the 0.25% levy on the turnover of companies. We expect that the recent directive by the FGN to the FIRS will trigger enforcement of the NASENI levy by the FIRS.
We note that the income threshold for the 0.25% contribution by companies was recently increased by the NASENI Governing Board to N100,000,000.00 (One Hundred Million Naira); however, the validity of the increased threshold is unclear as the NASENI Governing Board cannot amend the provisions of the Act. An amendment will require an act of the National Assembly.
Click this link for the NASENI Act.
Please contact businessadvisory@aluko-oyebode.com for further clarifications.
