FZEs Free from ITF – Justice C.M.A Olaterogun

0

A Federal High Court sitting in Lagos has declared that Free Trade Zones are not liable to contribute to the Industrial Training Fund.

The declaration was made by Honourable Justice C. M. A Olatoregun in a suit with suit No. FHC/L/CS/2005/2014 filed by  the Industrial Training Fund (ITF) against Nigerdock Nigeria Plc-FZE and the Nigeria Export Processing Zones Authority (NEPZA).

The ITF had by an  Originating Summons sought a declaration that Nigerdock Nigeria Plc-FZE, a Free Zone entity is liable to contribute 1% of its annual pay roll as statutory contribution to the ITF. The ITF also sought an order directing NEPZA to ensure that Nigerdock complies with its order to pay the 1% contribution.

ITF relied on the provision of Section 6(3) of the 2011 ITF Act to urge the Honourable Court to find in its favour and compel Free Zone Entities to contribute to the ITF.

In their respective counter affidavit against the Originating Summons, both Nigerdock and NEPZA argued that by virtue of the provisions of Sections 8 and 18(1) of the NEPZA Act Free Zone Entities are exempted from contributing to ITF.

In her judgment, Justice Olaterogun held that having considered  Section 6(3) within the context of Section 8 and 18(1) of the NEPZA Act, Free Zone Entities do not require approval for expatriate quota and  do not utilize custom services in matters of export and import and are therefore not liable to pay ITF contribution

Send your press release/articles to:

 info@dnllegalandstyle.com ,Follow us on Twitter at @dnlpartners and Facebook at Facebook.com/Dnl-partners

ALSO READ   Nigerian Law School Doesn’t Need Additional Campuses

LEAVE A REPLY

Please enter your comment!
Please enter your name here