In the National Youth Service Corps Trust Fund (Establishment) Bill 2021, the House of Representatives proposes a punishment of N2 million or a year in prison for corporations or owners that fail to release 1% of their profit to fund the plan.
The Fund would be funded by a 1% fee on the net earnings of enterprises and the organized private sector operating in Nigeria, according to the bill, which is currently pending second reading in the House.
It will also be funded by 0.2 percent of overall revenue going to the Federation Account, as well as any take-off grants and special intervention funds that the federal, state, and municipal governments may contribute.
Other sources of fund include “such money as may be appropriated to meet the objective of this Act by the National Assembly in the budget; aids, grants and assistance from international bilateral and multilateral agencies, non-governmental organisations and the organised private sector; grants, donations, endowments, bequests and gifts, whether of money, land or any other property from any source; and money derived from investment made by the Trust Fund.”
As a result, the bill establishes consequences for non-compliance with the proposed legislation.
It stated, “Except as otherwise provided in this Act, a person guilty of an offence under this Act shall, on conviction, be liable – for a first offence, to imprisonment for a term of six months or to a fine of up to N1,000,000.00 or both; and for a second and subsequent offences, to imprisonment for a term of 12 months or to a fine of up to N2,000,000.00 or both.
“The institution of proceedings or imposition of a penalty under this Act shall not relieve a company or sector from liability to pay to the Service a levy which is or may become due under this Act.
“Notwithstanding the provisions of Sub-section (1) (a) and (b) of this section, where any company or sector or corporate body liable to file a return on the levy under this Act fails in any year to file such return, the Service, if it is of the opinion that such a company or sector or corporate body is liable to pay the levy, may, according to the best of its judgment, determine the amount of assessable profit of such company and make an assessment of the levy in accordance with the provisions of this Act.”