In a revelation that has sparked widespread interest across Nigeria’s corporate space, HR and legal expert Iretioluwa Oguntoye has drawn attention to a critical but often ignored provision of Nigerian labour law: employers are legally mandated to fund the training and development of their staff — and they can even claim up to 50% of the cost back.
According to Oguntoye, under the Industrial Training Fund (ITF) Act, any Nigerian company with five or more employees or an annual turnover of ₦50 million is required to contribute 1% of its annual payroll to the Industrial Training Fund. While this is widely seen as a tax by many employers, it is in fact a resource designed to empower Nigerian workers through structured learning and development.
What’s even more surprising is that companies who organize and execute eligible training programs for their staff can apply for and receive a refund of up to 50% of their contribution from the ITF. Yet many employers are either unaware of this benefit, fail to structure their training programs properly, or simply ignore the opportunity altogether.
Oguntoye, who leads a Learning and Development team, emphasized that this provision is not just a recommendation—it is a legal obligation. The 1% ITF payment is not optional for qualifying companies, and failing to leverage it for the training of employees is a disservice to the workforce.
She called on employees to engage their HR departments and ask questions about their organization’s compliance with the ITF Act. This is not just about policy; it is about ensuring workers get the training they are legally entitled to and encouraging organizations to benefit from a refund that can ease financial burdens while improving team capacity.
For HR professionals and business leaders, this is an opportunity to reassess internal training policies, align with ITF requirements, and take advantage of the rebate system that rewards proactive workforce development.
The post has since triggered conversations among professionals across LinkedIn, many of whom expressed shock at the legal backing behind employee training and the refund opportunity their companies have been missing.
As conversations around workforce development and employee empowerment continue to gain momentum, Oguntoye’s post stands as a timely reminder that Nigerian workers deserve structured learning — and employers have everything to gain by making it happen.
Shola Akinyele
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