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JUST IN: FG Slams New Tax On Telephone Calls

Published

4 years ago

May 22, 2022

The Federal Government has slammed a new tax on phone calls in the nation to fund free healthcare for the Vulnerable Group in Nigeria.

This is despite recent moves by telecommunication companies to increase the price of their services as a result of an unfavourable operating climate.

The telecom tax in the equivalent of a minimum of one kobo per second for phone calls is a part of the sources of funds required to finance free healthcare for the Vulnerable Group in Nigeria.

This is contained in the National Health Insurance Authority Bill 2021 signed by the President, Major General Muhammadu Buhari (retd.), last week.

The act includes a provision under Section 26 subsection 1c which states that the source of money for the Vulnerable Group Fund includes telecommunications tax, not less than one kobo per second of GSM calls.

The Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers, Taiwo Oyedele, said, “S.26 of this new law imposes a telecommunications tax of not less than 1kobo per second on GSM calls. With call rates at about 11kobo per second, this translates to a 9 per cent tax on GSM calls.

“The tax is one of the sources of money to the Vulnerable Group Fund to subsidise the provision of healthcare to the group defined to include children under five, pregnant women, the aged, physically and mentally challenged, and the indigent as may be defined from time to time.”

According to the act, the Vulnerable Group Fund is money budgeted to pay for healthcare services for vulnerable Nigerians who cannot pay for health insurance in a bid to subsidise the cost of provision of health care services to vulnerable people in the country.

For funding, the act provides several options such as basic health care provision fund to the authority; health insurance levy; telecommunications tax, not less than one kobo per second of GSM calls; money that may be allocated to the Vulnerable Group Fund by the Government; motley that accrues to the Vulnerable Group Fund from investments made by the Council: and grants, donations, gifts, and any other voluntary contributions made to the Vulnerable Group Fund.

According to the new act, every resident in Nigeria is expected to obtain health insurance.

Recently, telecom companies wrote to the Federal Government, through the Nigerian Communications Commission, on the conditions of the industry.

The operator under the aegis of the Association of Licensed Telecommunication Operators of Nigeria proposed a 40 per cent increase in the cost of calls, SMS, and data as a result of the rising cost of operating in the nation.

PUNCH.

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Asian Stocks Rise As Precious Metals Surge

Published

2 minutes ago

December 26, 2025

Editor

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Trump’s Airstrikes: Halt Military Cooperation With US Immediately – Sheikh Gumi Tells Tinubu Govt

Published

11 hours ago

December 26, 2025

Editor

Islamic cleric, Sheikh Ahmad Gumi has called on the Federal Government to immediately halt all military cooperation with the United States following reported US airstrikes.

Gumi warned that American involvement could worsen Nigeria’s security challenges and undermine national sovereignty.

Gumi made the call in a statement posted on his Facebook page on Friday.

He said while Islam permits the fight against terrorism, such actions should only be carried out by what he described as “clean hands,” arguing that the United States lacks the moral authority to lead such efforts because of its global military record.

According to the cleric, Nigeria made a mistake by allowing foreign powers to play a role in its counterterrorism operations, insisting that “terrorists do not truly fight terrorists” and that such interventions often result in civilian casualties and hidden political motives.

Gumi warned that allowing Nigeria to become a theatre of war would attract anti-US forces into the country, further destabilising it.

He also cautioned that US involvement, particularly under claims of protecting Christians, could polarise the country along religious lines.

The cleric further argued that airstrikes alone cannot defeat terrorism, stressing that effective counterterrorism requires strong ground operations, which he said Nigeria has enough personnel to carry out if properly organised.

“This is the mistake Nigeria has made. Terrorists don’t fight terrorists in truth; they may only kill innocent people and have ulterior motives behind the drama of fighting ‘terror’.

“As a principle, no nation should allow its land to be a theater of war. And no nation should allow its neighbors to be their enemies.

“If Nigeria wants military assistance, China, Turkey, and Pakistan can do the job effectively,” part of his statement reads.

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Shehu Sani Reacts To Trump’s Military Strikes In Nigeria

Published

12 hours ago

December 26, 2025

Editor

Former lawmaker, senator Shehu Sani, has reacted to reports of United States military strikes on terrorist targets in Nigeria’s North-West, saying foreign powers cannot permanently handle the country’s security challenges.

Sani made the remarks on Friday via his X handle while responding to a post by the United States Africa Command, AFRICOM, which indicated that the strikes were carried out in coordination with Nigerian authorities.

According to him, if the reported strikes were indeed a joint operation with Nigerian security agencies, then such action was justifiable, given the threat posed by terrorist groups in the region.

He described terrorists operating in parts of northern Nigeria as “cancerous cells,” stressing that they survive through violence and should be confronted decisively.

Sani also dismissed narratives suggesting that terrorist attacks target only one religious group, describing such claims as false and misleading.

He said: “If actually, the military strikes against the terrorists targets in the North Western part of Nigeria were a joint operation with the ‘Nigerian Authorities’ as posted by the US AFRICOM on their verified X handle, then it’s a conscionable action.

“Terrorists have become cancerous cells in our part of the country.They live by the sword.The narrative that the evil terrorists only targets one faith, remains absolutely false and misleading.

“Again, the ultimate security and peace in our country lies with ourselves and not with the US or any foreign power. They can complimentarily or unilaterally strike, but they can’t eternally fight our battles.”