0.5% of FG revenue, 0.005% of companies’ profit… highlights of maritime trust fund bill

On Wednesday, the national assembly passed the Nigerian Maritime Security Trust Fund bill.

Sponsored by Yusuf Gbagi, a lawmaker from Plateau state. 

The legislation is titled, ‘A Bill for an Act to Establish the Nigerian Maritime Security Trust Fund for the Purpose of Training, Provision of Security Equipment and Related Facilities, Enhance the Skills of the Personnel of the Nigerian Navy; and for Related Matters’.

The senate, in passing the bill, amended Clause 14(1) by removing the recommendation of the supervising minister in the appointment of the executive secretary of the fund, giving the president the powers to unilaterally do so.

Here are highlights of the maritime trust fund bill:

0.5% FEDERATION ACCOUNT REVENUE

Clause 4(a) provides that the trust fund shall consist of “an amount constituting 0.5 percent of the total revenue accruing to the federation account”.

IMPOSITION OF 0.005% LEVY ON NET PROFIT ON COMPANIES OPERATING IN NIGERIA

Clause 4(b) stipulates that the fund will be sourced from a “levy of 0.005% of the net profit of companies operating a business in Nigeria”.

GRANTS AND DONATIONS ALLOWED

Clause 4(c) states that the sources of the trust fund will include any take-off grant and special intervention fund as may be provided by the federal, state or local government.

“4(d) monies appropriated by the National Assembly in the budget to meet the objective of the Act;

“4(e) aids, grants and assistance from international agencies, non-governmental organisations and the private sector;

“4(f) grants, donations, endowments, bequests and gifts (whether of money or property) from any source; and

“4(g) money derived from investments made by the Trust Fund.”

ESTABLISHMENT OF BOARD OF TRUSTEE

The bill made provision for a Board of Trustee, implementation committee and an executive secretary with powers to administer the trust fund.

FUND TO BE OPERATIONAL FOR SIX YEARS

The trust fund will be operational for six years unless extended by an act of the national assembly.

EXEMPTION FROM PAYMENT OF INCOME TAX

Clause 23 (1) provides that exempted the Trust Fund from income tax from any income accruing from investments or otherwise.

“23(2) The provisions of any enactment relating to the taxation of companies or trust funds do not apply to the Trust Fund.”

TRAINING AND DEVELOPING THE NIGERIAN NAVY

It seeks to provide funds for the training and retraining of personnel of the Nigerian Navy. It will also provide them with state-of-the-art security equipment and machinery and enhance their preparedness to effectively discharge their constitutional duties.