The Nigeria Police Trust Fund (Establishment) Act was signed into Law by President Muhammadu Buhari.
The Act, which came into force on 24th of June 2019, creates the Nigeria Police Trust Fund, which is a body corporate with a common seal.
The Police Trust Fund Act aim is to provide a legal framework for the management and control of a special intervention fund for training and retraining of personnel of the Nigeria Police Force and for the provision of state-of-the-art security equipment, and other related facilities for the improvement of the skills of the officers of the Nigeria Police Force including its auxiliary staff in Nigeria and abroad.
The Trust Fund is to operate for a period of six years from the commencement of the Act, after which it would cease to exist except extended for any further period by an Act of the National Assembly.
The Federal Government’s decision to institute the NPTF is to strengthen the NPF as a welcome development.
The NPTF Act establishes the Trust Fund as a body corporate with perpetual succession and a common seal, which may sue and be sued in its corporate name.
The Fund shall comprise of 0.5% of the total revenue accruing to the federation account, take-off grants, aids, donations, and interestingly, 0.005% of the net profit of companies operating business in Nigeria.
The NPTF Act also establishes the NPTF Board of Trustees, which will be liable for investing money accruing to the Trust Fund, setting policies for training and retraining of personnel of the NPF, and so on.
The Act exempts the Trust Fund from the payment of income tax on any income accruing from investments made by the Trust Fund.
The Act is nevertheless silent on the penalty for non-compliance and does not also provide for a timeline within which to remit the contribution.
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