Tertiary Healthcare Development Bill – New Tax on Companies in Nigeria

The Nigerian Senate has passed a bill to establish a Tertiary Healthcare/Hospitals Development Fund (THD Fund). The THD Fund will provide money for the rehabilitation, restoration, and consolidation of tertiary healthcare in Nigeria.

The Tertiary Healthcare/Hospitals Development Fund shall provide and maintain the infrastructure necessary for tertiary healthcare delivery, carry-out health research and clinical training, and disburse money to different tertiary teaching hospitals in Nigeria. Treasury management, monitoring, and evaluating the execution of projects are also among the duties of the Fund.

Sources of funds for the THD Fund are:

  1. an initial grant provided by the Federal Government
  2. money allocated by the National Assembly
  3. one percent (1%) of petroleum companies’ tax paid on total barrels of crude oil produced per annum
  4. 1% of mobile phone service providers’ tax paid on airtime and data sold in a year
  5. 1% of beverages and breweries companies tax paid on profit yearly declared
  6. 1% of cement companies on profit yearly declared
  7. 1% of paint and chemical manufacturing companies tax paid on profit yearly declared
  8. 1% of tobacco companies tax paid on profit yearly declared