As we are all aware, the Federal and State Governments in Nigeria regularly issues notices (tender journals) inviting contractors to bid for various contracts that have been included in the budget. You will have noticed that these adverts (called tenders) typically spell out some documents which any interested contractor must possess before they can qualify to submit a bid.
Some of these documents include the CAC Documents, Pencom Certificate, ITF Certificate, NSITF Certificate and BPP Registration. Based on the Procurement Laws of Nigeria it is mandatory that Private Contractors, Suppliers, or Consultants bidding or lobbying for business or contract from any Federal Government Ministries, Departments and Agencies must importance and requirements for processing these documents.
Today we discuss the requirements for these certificates.
PENCOM COMPLIANCE CERTIFICATE
This compliance certificate is issued by the National Pension Commission (PENCOM) yearly. It is necessary for organizations willing to transact business with the Federal Government of Nigeria. Organizations wishing to obtain the annual Pension Clearance Certificate are required to forward their applications to the Commission along with the following documents:
- Company’s registration documents
- Certified list of employees
- Certified rate of monthly pension contributions (10% for employer, 8% for employee)
- Evidence of remittance of monthly pension contributions for all employees
- Evidence of remittance of all outstanding pension contributions for the last 3 years or from date of incorporation
- Evidence of transfer of pension fund and assets (if applicable)
- Evidence of current group life insurance policy for staff
- Payment of fees
The processing of applications takes about 3 weeks from the date of receipt. Certificates or rejections can be picked up at the offices where the applications were submitted. Also, applicants can confirm if their applications are successful by checking the Commission’s website www.pencom.gov.ng where the list of organizations issued Certificates is updated daily.
BUREAU OF PUBLIC PROCUREMENT (BPP)
The Bureau of Public Procurement (BPP) is the agency in charge of registering entities interested in securing contracts with the Federal Government of Nigeria or submitting EOI (Expression of Interest) for projects by any Federal MDA’s. It is mandatory you register your business in the Federal database for contractors, suppliers and consultants. The requirements for registration include the following:
- Company Registration Documents
- List of completed jobs
- CVs of board of directors
- Tax Clearance
- PenCom (Exemption for companies with less than three (3) personnel)
- ITF Certificate (Exemption for companies with less than five (5) personnel or Turnover of less than N50million
- NSITF Certificate
Upon satisfaction with all the necessary requirements, contractor can apply for a BPP certificate which is evidence of registration.
Note: if company has less than three employees, a National Pension Commission (Pencom) compliance certificate is not needed. If company has less than five employees, an Industrial Training Fund Certificate is not needed.
INDUSTRIAL TRAINING FUND (ITF) COMPLIANCE CERTIFICATE
The Industrial Training Fund (ITF) Compliance Certificate is a major document required if you are applying for tenders, contracts in any Federal government MDA’s.
The ITF Act provides that any supplier, contractor or consultant bidding or soliciting contracts, businesses, goods, and services from any Federal Government Ministry, Department, Agency, must contribute 1% of its total annual payroll to the Fund. Companies having 5 or more employees or having less than 5 employees but with turnover of N50m and above per annum are to comply with this before certificate can be issued.
The process for applying for ITF Compliance Certificate include:
- Completing ITF Form 7A and submitting to the nearest ITF Area Office along with the following:
- A copy of the company’s Corporate Affairs Commission’s Certificate of Incorporation.
- Certified true copies of the company’s Audited Account.
- A copy of the company’s Tax Clearance.
- The company will be assessed for its liability by ITF Revenue, Inspectorate and Compliance Officers.
- Payment of fees.
- After payment, hard copy of receipt and acknowledgment letter will be issued to the client.
- The ITF Area Office will then forward the employer details as contained in the form 7A to Headquarters’ Revenue, Inspectorate and Compliance Department for issuance of ITF National Number
- The ITF National Number will then be sent to the Area Office for Scripting and issuance of Certificate of Compliance.
NATIONAL SOCIAL INSURANCE TRUST FUND (NSITF) COMPLIANCE CERTIFICATE
The National Social Insurance Trust Fund – NSITF Compliance certificate is one of the important documents for contractors or suppliers dealing with the Federal government of Nigeria.
National Social Insurance Trust Fund (NSITF) is a Social Insurance System designed to provide compensation to employees who suffer from occupational diseases, sustain injury, disability or is incapacitated from an accident at the workplace or during employment, this covers the usual place of work or outside the place of work. It also ensures that compensation is paid to the next of kin of the employee in a situation where death occurs during the course of work.
For a company to obtain NSITF certificate, there will be an assessment of the employees’ wages by NSITF in order to ascertain the amount that will be paid for per month multiply by twelve months.
The following are documents required for NSITF Registration:
· Certificate of Incorporation with CAC
· Completion of Registration form ECS RE 01- stating Company Name, Address, and Telephone No etc.
· Payroll Schedule Form RE 03 stating employee’sdetails- Staff Name, ID Number, Gender, Remuneration
· Tax Clearance Certificate
The Employer’s rate of contribution is calculated at 1% of total payroll consisting of total emolument. Payment of any assessment due to NSITF shall be due on the 1st January in the year for which it relates. The processing time takes about three to four weeks.
Kudi Konsult is Nigerias No 1 Platform for all your Business Support Needs. On one platform you can get Business Registration (CAC), Trademark Registration, Business Plan Writing, NAFDAC Registration, Website Development, Logo Design, DPR Registration, Loan Support Services etc.
Click Link Below To Chat With A Consultant Now