The spectacular revenue progress recorded by a number of Nigerian banks in 2024 is making a big impression on the nation’s expertise ecosystem, as their contributions to the Nigeria Data Know-how Improvement Fund (NITDEF) surged by 57% year-on-year to N34.3 billion.
That is in keeping with the evaluation of the 2024 audited monetary outcomes of six business banks.
The banks embrace Zenith Bank Plc, Guaranty Trust Holding Company Plc, United Bank for Africa Plc, Fidelity Bank Plc, Stanbic IBTC Holdings Plc and Wema Bank Plc.,
In contrast with the N21.8 billion contributed by the six banks in 2023, this marked a big improve.
Highest contribution up to now
Whereas the federal government has been complaining through the years about firms not complying with the obligatory fee of 1% of their revenue to develop the Nigerian tech ecosystem, the six banks’ remittance for 2024 got here as the very best contribution to the Fund up to now.
- Information gleaned from the banks’ 2023 outcomes confirmed that every one banks within the nation contributed N33.7 billion to the Fund.
- For 2024, the N34.3 billion was only for the banks which have launched their outcomes up to now, excluding giants like FBN Holdings and Entry Holdings, who have been two of the most important contributors to the Fund in 2023.
- For 2022, the Federal Inland Income Service (FIRS), which collects the tax on behalf of the Nationwide Data Know-how Improvement Company (NITDA), mentioned it collected a complete of N22.5 billion as NITDEF levy, and it was the very best annual assortment at the moment.
What every bank paid
Funds by the banks replicate their revenue for the 12 months, because the banks with the most important income paid the most important quantity. Zenith Bank, which recorded a revenue earlier than tax of N1.3 trillion for 2024, paid N11.4 billion into the tech fund, a 70% improve in comparison with the N6.7 billion it contributed in 2023.
- Equally, GTCO, which recorded N1.26 trillion revenue earlier than tax, paid N10 billion IT levy, up from N4.7 billion it contributed within the earlier 12 months.
- United Bank for Africa (UBA), with a revenue earlier than tax of N803.7 billion, paid N4.67 billion as the knowledge expertise levy in 2024. That is, nonetheless, decrease than the N6.7 billion it put into the Fund in 2023.
- Stanbic IBTC additionally paid N3.2 billion into the tech fund from its pre-tax revenue of N303.7 billion. The bank paid N1.8 billion IT levy in 2023.
- Fidelity Bank, which posted N385.2 billion revenue earlier than tax for 2024, paid N3.9 billion into the tech fund.
- Wema Bank, with a pre-tax revenue of N102.51 billion in 2024, paid N1 billion into the tech growth fund.
Firms required to pay the NITDEF levy
In accordance with the Nationwide Data Know-how Improvement Company (NITDA) ACT 2007, which established the NITDEF, firms working in Nigeria with an annual turnover of N100 million are to pay 1% of their annual revenue earlier than tax to the fund.
Firms mandated to pay the levy as said within the third schedule of the Act embrace GSM service suppliers and all telecommunications firms; Cyber Firms, and Web service suppliers.
It additionally contains non-IT firms comparable to pension managers and pension-related firms; Banks and different Monetary Establishments; and Insurance coverage Firms.
The Act additionally stipulates punishment in case of default, stating that,
“Any firm, company or organisation that fails inside two months after a requirement observe, to pay the levy or the import obligation imposed below part 11 of this Act commits an offence and is liable on conviction to a high quality of not lower than N 1,000,000.00 and the Chief Govt Officer of the corporate, Company or Organisation shall be liable to be prosecuted and punished for the offence in like method as if he had himself dedicated the offence, until he proves that the act or omission constituting the offence befell with out his information, consent or connivance”.
Nonetheless, NITDA not too long ago lamented that many firms haven’t complied with the regulation’s provision in paying the price.
What the Fund is used for
In accordance with the Director-Basic of NITDA, Kashifu Inuwa, NITDEF is essential to the Company’s success in all areas of its mandates geared in direction of expertise growth in Nigeria.
He mentioned the fund is pivotal within the ongoing implementation of the Nationwide Digital Abilities Technique Implementation geared in direction of guaranteeing that 95% of Nigerians grow to be digitally literate by 2030.
The NITDA boss defined that the fund can also be being deployed in its key focus areas, which embrace:
- The implementation of the Nigerian Startup Act,
- Completion of the Nationwide Digital Innovation and Entrepreneurship Centre,
- Nationwide Information Technique Implementation,
- Adoption of Blockchain Know-how, and
- Implementation of the Nationwide Digital Abilities Technique, amongst others.
In the meantime, the Lead for Basic Tax Operations at FIRS, Kabiru Abba, emphasised the necessity for NITDA to proceed to showcase its achievements with the Fund.
In accordance with him, this is able to assist the taxpayers to simply set up a connection between the taxes paid and their socio-economic impression, which will even help in enhancing voluntary compliance.
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