The longer the lamentable and pitiable state of Nigeria’s police force, the more the question arises, why there is a delay in the implementation of the Police Trust Fund?
The Fund was supposed to help in bridging the funding gap in the Police Force. If there is one country that needs to improve the security situation in her domain in order to project an image of a secured, attractive and welcoming country to the world, it is Nigeria. To improve security and position the country as a secured destination for both local and foreign investments, a significant amount of money is required.
But analysts have questioned why newly formed Nigeria Police Trust Fund aimed at improving funding and training of personnel of the force, despite the urgency needed.
What is the Nigeria police trust fund?
On 24 June 2019, President Muhammadu Buhari signed the Nigeria Police Trust Fund (Establishment) Bill into law.
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The Nigerian Police trust fund specifies the imposition of a 0.005percent levy on every Nigerian company’s net profit. Also, 0.5percent of the total revenue accruing to Nigeria’s Federation Account will be added to the fund. The aim here is akin to every other trust fund there is, in that the assets accumulated will be held in trust and used for the purposes of training police personnel and procurement of needful police equipment.
The fund will have a duration of six years, during which time a Board will be constituted and charged with the responsibility of overseeing it. Specifically, the responsibilities of the board will include administering the fund and deciding on viable investment options. At the end of the six-year period, the fund (along with its assets and liabilities), will be transferred to the Nigeria Police force.
Silent issues delaying
According to an independent firm with a worldwide presence, Andersen Tax, “the law does not stipulate any modality and timeline for such payments to be made and the appropriate Agency responsible for collection and enforcement of the levy.”
“The act does not stipulate any penalty for failure to pay the prescribed levy of 0.005percent. Thus, the modality for application and enforcement of the levy is still uncertain,” Andersen Tax said. One of the Big Four accounting organizations and the largest professional services network, Deloitte expects that the Board established to administer the Fund or federal the government will release appropriate guidelines and regulations to clarify the uncertainties and ambiguities in the Act.
Exactly 11 months after assenting to the bill, President Buhari appointed a retired inspector-general of police, Suleiman Abba, as the Chairman of the Board of Trustees of the Nigeria Police Trust Fund, however, the board is yet to give any guidelines on how it plans to operate.
The 8-man board includes Ahmed Sokoto (Executive Secretary), Maurice Mberi (representing Ministry of Police Affairs), IG Abubakar Adamu (representing the police) and Bilikisu Usman (Ministry of Justice).
Others are Ben Akabueze (Ministry of Finance, Budget and National Planning, Mamu Ahmed (private sector) and Micheal Bamidele (civil society groups).
Experts’ opinions
Andersen Tax expects the Board of Trustee to provide additional clarification via a Regulation.
“The Board needs to come up with a lot of clarity soon, I do hope when this trust fund is up and running it will not be fraught with corruption as has been the case with other interventionist agencies,” Jide Ojo, a legal practitioner, with deep knowledge of the police said.
TNP, commercially oriented law firm with a global outlook said the police trust fund does not define what “net profit” upon which the levy is to be imposed which may become a challenge when collecting.
“This should not be the case in taxing legislation,” Babajimi Ayorinde and Samuel Esuga from TNP said.
