Nigeria: Proposed new levy on companies to fund youth services corps

The fund would be supported in part by an earmarked levy of 1% of the net profit of companies operating business in Nigeria.

To fund youth services corps

The National Assembly recently passed legislation for the establishment of the National Youth Service Corps Trust Fund, which aims to provide sustainable funding for the monthly allowances for corps members, skill acquisition, training, and development of orientation camps.

The fund would be supported in part by an earmarked levy of 1% of the net profit of companies operating business in Nigeria.

KPMG observation

The Federal High Court (Abuja Division) recently held that a levy imposed on companies to finance a police trust fund was inconsistent with the provisions of the 1999 Constitution and thus was null and void. Read TaxNewsFlash

If the president assents to this recent legislation, the earmarked levy would appear to be vulnerable to a similar challenge.

Read a July 2022 report [PDF 302 KB] prepared by the KPMG member firm in Nigeria

 

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