FG removes telecommunications tax from newly signed NHIA Act

The federal government has removed the telecommunications tax from the new National Health Insurance Authority Act (NHIA).

The NHIA bill 2021 was signed into law by President Muhammadu Buhari on May 19, 2022.

Prior to the signing, Section 26(1c) of the Act mandated the collection of “telecommunications tax, not less than one kobo per second of GSM calls” as one of the sources of funding for the Vulnerable Group Fund.

But the new document signed into law by the president expunged the section.

The law defines the vulnerable group as children under five, pregnant women, the aged, physically and mentally challenged persons, and the indigent “as may be defined from time to time”.

According to the document seen by TheCable, the new source of funding for the Vulnerable Group Fund includes Basic Health Care Provision Fund, health insurance levy, special intervention allocated by the government, money accrued to the Fund from investment, grants, donations, gifts and other voluntary contribution.

It specified that the money from the vulnerable group fund shall be expended to provide subsidy for health insurance coverage of vulnerable persons as determined by the council; and for the payment of health insurance premiums for the indigent.

The National Health Insurance Authority Act further mandated all residents in Nigeria obtain health insurance.

Editor’s note: This story has been updated to reflect details of the signed NHIA by President Muhammadu Buhari on the new source of funding for the vulnerable group.