The use of earmarked taxes for certain development purposes by the Nigerian government has long been in existence.
The National Agency for Science and Engineering Infrastructure (NASENI) was established by the NASENI Act, Cap N3 LFN 2004.
The Agency has a mandate to manage the research and development of capital goods, production, and reverse engineering to enhance local mass production of standard parts, goods, and services required for the nation’s technological advancement.
By virtue of the finance act 2020, the rate for this levy is 0.25% of the profit before tax of Nigerian companies.
The levy is payable by companies in the telecommunication, banking industry, and digital space.
The establishment of this agency was meant to fast-track Nigeria’s course on research and development thereby providing job opportunities and enhancing economic development.
NASENI has the requisite human and material capacity to intervene and bridge all development gaps in different sectors of the Nigerian economy through the core mandate given to it by extant laws, if given the requisite support to thrive, this could form the country’s key to improved research and development.
Transparency in the way taxes are collected and extended has been an issue the country has faced over time, an efficient administration of this levy will go a long way in enhancing the scientific infrastructure in the country.
Meanwhile, it is important to note that NASENI Levy is tax-deductible for CIT purposes.
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