Industrial Training Fund Act

Abstract

The Industrial Training Fund was established in 1971 by the Federal Government of Nigeria under the supervision of the Federal Ministry of Industry Trade and Investment. The purpose of the Industrial Training Fund is to promote and encourage the indigenous trained personnel. The existence of this parastatal was later reviewed and a low was enacted by the National Assembly to be referred as an Act to be called the “Industrial Training Fund Act of 2004” and 2011 the Industrial Training Fund (Amendment) Act (ITFAM) amended the ITFA, further amplifying its implementation. In the foregoing, the promulgation of this Industrial Training fund is to regulate as an Act to promote the needed skills and manpower development. The ITF Act is also mandated to carter for Students Industrial Work Experience Scheme (SIWES) and other needed manpower development to boost the economy of Nation – Nigeria. However, in all these, the ITFA lacks implementation. Whilst it has been argued that the ITFAM rather drives the ITFA away from its sole objective, the more pertinent question is: does Nigeria actually still needs the ITF? This article will attempt to show that the ITF is an anachronism and a regulatory overhang, as its underlying objective could still be achieved without the institution. However, since employers with the more value-adding staff development plans will attract, motivate and retain the best talent, and consequently enjoy competitive market advantage, there is no need for any 'extraneous' regulatory interventions a la ITF in the business landscape. It is respectfully submitted that the ITF has outlived its usefulness and should therefore be scrapped, or at the very least be restructured to make the counter-arguments against its utility (as discussed above), less forceful. Government should focus more on creating the requisite enabling environment for exceptional operational performance by employers. This will in turn lead to increased tax contributions to the public fisc, for government spending accordingly, on determined priority areas