CASE DIGEST - INTERNATIONAL TRADE: FREE TRADE ZONES; ARE ORGANISATIONS OPERATING WITHIN THE FREE TRADE ZONES REQUIRED TO MAKE CONTRIBUTIONS TO INDUSTRIAL TRAINING FUND?

DIRECTOR GENERAL INDUSTRIAL TRAINING FUND v. NIGERDOCK NIGERIA PLC FZE; NIGERIA EXPORT PROCESSING ZONE AUTHORITY

COURT OF APPEAL (NIGERIA)

(BADA; UMAR; SIRAJO, JJ.CA)

Background Facts

The Director General Industrial Training Fund (Appellant) case at the Federal High Court (trial court) is that it is a federal government parastatal establishment, charged with the responsibility of providing, promoting and encouraging the acquisition of skills in the industry and commerce sector as well providing training for skills in management for technical and entrepreneurial development and that any employer with five employees and above or with an annual turnover of N50 Million is mandated to register with it and pay 1% of the annual payroll as training contribution to it, and that where an employer fails to register and make payment as and when due, such an employer is liable to pay 5% penalty every month on the amount due and unpaid. The Appellant further stated that Nigerdock Nigeria Plc FZE (1st Respondent), as a limited liability company registered with the Appellant as a contributor paying its contribution to the Appellant from 1989 up to 2006. On January 4, 2010, the Appellant wrote the 1st Respondent requesting payment of its contribution for the 2007-2009 periods. Again, on 31 January 2012, the Appellant through its counsel wrote and explained the need for the 1st Respondent to pay its annual contribution.