The spectacular revenue progress recorded by a number of Nigerian banks in 2024 is making a major impression on the nation’s know-how ecosystem, as their contributions to the Nigeria Info Know-how Growth Fund (NITDEF) surged by 57% year-on-year to N34.3 billion.
That is based on the evaluation of the 2024 audited {financial} outcomes of six business banks.
The banks embody Zenith {Bank} Plc, Warranty Belief Holding Firm Plc, United {Bank} for Africa Plc, Constancy {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 major improve.
Highest contribution thus far
Whereas the federal government has been complaining over time 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 best contribution to the Fund thus far.
- 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 thus far, 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 Info Know-how Growth Company (NITDA), stated it collected a complete of N22.5 billion as NITDEF levy, and it was the 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 earnings 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 when put next 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 data know-how 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.
- Constancy {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 improvement fund.
Corporations required to pay the NITDEF levy
Based on the Nationwide Info Know-how Growth 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.
Corporations mandated to pay the levy as said within the third schedule of the Act embody GSM service suppliers and all telecommunications firms; Cyber Corporations, and Web service suppliers.
It additionally consists of non-IT firms comparable to pension managers and pension-related firms; Banks and different {Financial} Establishments; and Insurance coverage Corporations.
The Act additionally stipulates punishment in case of default, stating that,
“Any firm, company or organisation that fails inside two months after a requirement be aware, to pay the levy or the import obligation imposed underneath part 11 of this Act commits an offence and is liable on conviction to a advantageous of not lower than N 1,000,000.00 and the Chief Government 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, except he proves that the act or omission constituting the offence came about with out his data, consent or connivance”.
Nevertheless, NITDA just lately lamented that many firms haven’t complied with the legislation’s provision in paying the charge.
What the Fund is used for
Based on the Director-Basic of NITDA, Kashifu Inuwa, NITDEF is essential to the Company’s success in all areas of its mandates geared in the direction of know-how improvement in Nigeria.
He stated the fund is pivotal within the ongoing implementation of the Nationwide Digital Expertise Technique Implementation geared in the direction of making certain 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 embody:
- 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 Expertise 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.
Based on him, this might assist the taxpayers to simply set up a connection between the taxes paid and their socio-economic impression, which may even help in enhancing voluntary compliance.
