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Question

Difficulty: MediumLiteral Comprehension and Fact Retrieval

Read the passage below carefully:

The National Information Technology Development Agency (NITDA) was established in 2001 by the Nigerian Federal Government to implement the National Information Technology Policy. Funding for NITDA is derived primarily from the National Information Technology Development Fund, which is sustained through a 1 percent levy imposed on the profit before tax of specified telecommunications, cyber, and financial institutions with annual turnovers exceeding 100 million Naira. Unlike regulatory bodies that rely entirely on direct federal treasury allocations, NITDA operates as a semi-autonomous agency under the supervision of the Ministry of Communications and Digital Economy.

Evaluate the statement: NITDA receives its primary funding directly from annual federal budget allocations.

Answer: Answer

Answer

The statement is False. NITDA's primary funding comes from a 1 percent corporate levy through the National Information Technology Development Fund, not from direct federal treasury allocations.
The passage explicitly notes that NITDA is funded primarily through a 1 percent corporate levy via the National Information Technology Development Fund, contradicting the assertion that its primary funding comes from direct federal budget allocations.

Step-by-Step Solution

1
Locate the sentence addressing NITDA's source of funding in the passage.
The text states that funding is 'derived primarily from the National Information Technology Development Fund, which is sustained through a 1 percent levy'.
Literal comprehension requires identifying facts directly stated in the text.
2
Compare the statement with the explicit details in the passage.
The statement claims primary funding comes from direct federal budget allocations, whereas the text specifies a 1 percent levy on corporate profits.
Determining whether a factual assertion matches explicit text evidence.

Key Concept

Literal Comprehension and Fact Retrieval
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Topics

Literal Comprehension and Fact Retrieval

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