How to Obtain PENCOM, ITF, NSITF Compliance Certificates, Register with BPP, and Submit a Successful Tender/Expression of Interest for Government Contracts in Nigeria

In Nigeria’s mixed economy, the synergy between government and private sectors is crucial for selecting contractors, firms, and companies that align with the Public Procurement Act (PPA) 2007.

This ensures that only the most qualified entities secure the rights to execute government projects in the public interest.

To successfully bid for government contracts, companies must meet specific eligibility requirements, including obtaining compliance certificates from PENCOM, ITF, and NSITF, registering with the Bureau of Public Procurement (BPP), and properly submitting their tenders.

Step 1: Corporate Affairs Commission (CAC) Registration

Before a company can process a PENCOM, ITF, or NSITF compliance certificate, it must be registered with the Corporate Affairs Commission (CAC).

Upon registration, the CAC issues a Certificate of Incorporation and certified true copies (CTCs) of essential documents, such as Status report, Forms CAC 2A, 2.1, 7A, or 1.1, which detail the company’s directorship, shareholders, secretary, and registered address.

These documents should always be readily available in the company’s registry.

Step 2: Obtain an Income Tax Clearance Certificate (TCC)

A company’s Income Tax Clearance Certificate (TCC) for the past three years is mandatory for any tender submission.

The TCC, valid until December 31 of the current year, is a recurring requirement for obtaining compliance certificates from various government agencies.

Process:

1. Obtain a Taxpayer Identification Number (TIN) from the nearest Federal Inland Revenue Service (FIRS) office.
2. Submit the following documents to FIRS to apply for the TCC:
   • For companies less than six months old: Taxpayer registration form, FIRS questionnaire, Certificate of Incorporation, letter of appointment of a tax adviser, VAT registration form.
   • For companies older than six months: The above documents, along with a statement of affairs or audited account, and a bank statement.

Step 3: Obtain a PENCOM Compliance Certificate

The PENCOM Compliance Certificate is essential for confirming adherence to the Pension Reform Act, 2014.

It ensures that companies bidding for government contracts comply with pension regulations.

Process:

1. Submit a request for an employer code to PENCOM, accompanied by the Certificate of Incorporation and TIN.
2. Register at least three employees with a Pension Fund Administrator (PFA) and ensure monthly pension contributions of at least 18% (10% by the employer, 8% by the employee).
3. Apply to PENCOM for the Compliance Certificate, providing a certified list of employees and their monthly pension contributions.
4. Provide evidence of a current Group Life Insurance policy covering at least three employees.

Step 4: Obtain an ITF Compliance Certificate

Compliance with the Industrial Training Fund (ITF) Act is mandatory for contractors bidding for government contracts.

Companies must contribute 1% of their total annual payroll to the ITF.

Process:

1. Register as an employer with ITF using Form 7A, available on the ITF website.
2. Submit the form along with the Certificate of Incorporation, audited accounts, and TCC to the nearest ITF area office.
3. Pay the assessed training contribution through the Remita platform and submit the payment receipt to ITF.
4. ITF will issue an ITF National Number and a Certificate of Compliance.

Step 5: Obtain an NSITF Compliance Certificate

The NSITF Compliance Certificate is another critical document for tender submission, verifying that the company has met its obligations under the Employee Compensation Act.

Process:

1. Submit a letter of request to NSITF, along with the Certificate of Incorporation, completed registration forms (ECS RE 01 and payroll Form RE 03), and proof of payment through Remita.
2. The liability assessment for the NSITF Compliance Certificate is 1% of the total salary of at least five employees.

Step 6: Register with the Bureau of Public Procurement (BPP)

An Interim Registration Report (IRR) from the National Database of Federal Contractors, Consultants, and Service Providers is required for bid submission.

Process:

1. Provide the CAC registration number, type of company, TIN, and company address details to register on the BPP portal.
2. Upon successful registration, the company will receive a username and password to access the portal and complete the registration process.

Step 7: Prepare for Tender Submission

To submit a tender successfully, companies must ensure they include all relevant documents, such as a sworn affidavit of non-pecuniary interest, audited accounts, proof of financial capability (e.g., a reference letter from a reputable bank), and evidence of previous project experience.

The technical documents and financial bid should be submitted in separate envelopes, which are then enclosed in a sealed outer envelope marked “INVITATION FOR TENDER” with the project title, company name, and RC number.

Conclusion

Adhering to the above steps is essential for successfully navigating the tender process for government contracts in Nigeria.

By ensuring compliance with PENCOM, ITF, NSITF, and BPP requirements, companies can secure their eligibility and increase their chances of winning government contracts while remaining compliant with the Public Procurement Act 2007.

For more information or processing any of the documents (PENCOM, ITF, NSITF or BPP registration), please call 08180524686 or send an e-mail to info@ica.ng