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By Merit Ibe
Against the backdrop of the recently signed National Health Insurance Authority Bill 2021 by President Muhammadu Buhari, the Lagos Chamber of Commerce and Industry (LCCI) has called on the government to create a regulatory environment that promotes investment in telecommunications infrastructure to boost Nigeria’s digital economy.
The Director General of the Chamber, Dr. Chinyere Almona, who made the call, said the bill which is replacing the National Health Insurance Scheme Act, 2004, places a new telecoms tax equivalent to a minimum of one kobo per second on phone calls by subscribers.
Acknowledging that the private sector has always shown commitment to supporting government’s efforts in providing some public infrastructure for all or mainly for the underprivileged, Almona noted that the implication of the new bill was that subscribers will be made to pay more for telecom services. “Companies that depend heavily on the telecommunication infrastructure to deliver their services will likely begin to incur an additional cost burden even as they are still struggling to comply with about thirty-six different taxes.
“Since the liberalisation of the telecoms sector in 1999, licensed GSM operators have invested heavily in infrastructure to guarantee quality service to telecom subscribers. Due to the rising cost of operations, telecom companies under the Association of Licensed Telecommunication Operators of Nigeria (ALTON) have put a plan in place for a proposed 40 per cent increase in the cost of calls, SMS and data in the coming weeks.” She emphasised the need for government to invest more in telecoms infrastructure for a thriving digital economy and minimise disruptions to telecoms companies’ operations while enforcing tax compliance.
For the realised funds, estimated to be about N90 billion yearly and meant to finance free healthcare for the vulnerable groups, the LCCI boss advised that it be managed to achieve the objective of the tax.
