The Senate of the Federal Republic of Nigeria recently passed the Tertiary Hospitals Development Tax (THDT) Fund Bill, 2021 (“the Bill”) for the establishment of the THDT Fund (“THDTF” or “the Fund”). The Fund will be used to facilitate the rehabilitation, restoration, and consolidation of Tertiary Healthcare in Nigeria.
We have highlighted below, some of the key provisions of the Bill:
1. Administration of the THDTF
The Fund will be managed by a Board of Trustees (BoT or “the Board”) consisting of a Chairman, an executive secretary, one representative from the six geopolitical zones and eight (8) other members from the specific ministries and agencies specified in the Bill. The BoT will oversee the administration and disbursement of the monies in the Fund to Federal and State Tertiary Hospitals, specifically for the provision and maintenance of the following:
- essential physical infrastructure for teaching, learning, research and services;
- instructional, medical and other services equipment;
- research and publication;
- staff training and development; and any other need which, in the opinion of the Board, is critical and essential for the improvement of quality and maintenance of standards in the Federal and State Tertiary Hospitals.
Further, Clause 12 of the Bill directs the Board to allocate a maximum of 10% of the total monies received in the preceding year to cover for the operating cost of the Board and other administrative costs, including employee related costs.
The BoT is also required to submit an annual report to the Minister of Health including a copy of the Fund’s audited accounts and the auditor’s report thereon.