Reps adopt report on establishment of Health Infrastructure Development Bank

Ongoing efforts to reposition the Nigeria’s health sector gained a boost as the House of Representatives on Thursday considered and adopted the report on the bill which seeks to establish the Nigerian Health Infrastructure Development Bank.

The report which was considered at the Committee of the Whole, seeks to enhance and promote the health and wellbeing of Nigerians of all walks of life, boost local healthcare capacity and for related matters.

As provided in Clause 11 of the proposed bill, the capital of the Bank shall consist of equity and loan capital of which N100 billion authorised capital which shall be divided into 10,000,000 shares of 10 million shares of N10,000 each shall be paid by Federal Government in such amount and on such terms as may be determined by the Minister of Finance.

Clause 12 which ;provides for General reserve fund stated that “The Bank shall establish a general reserve fund to which shall be allocated from the net profits of the Bank at the end of each financial year of the Bank: 50% of the net profits of the Bank for the year, when at the end of the year the fund is less than the authorised capital of the Bank; 25% of the profits of the Bank for the year, when the fund is equal to or exceeds the authorised capital of the Bank.”

Clause 12(2) further provides that: “After any allocation has been made in respect of subsection (1) of this (2) section, the balance of the net profits shall be applied to the retirement of any loan granted to the Bank by the Federal Government or any other body. (3) The remainder of the net profits, if any, shall be paid to the shareholders (3) of the Bank.

On the functions of the Bank, Clause 5 empowers the Bank to “provide long-term credit facilities to Nigerian-owned health and well-being infrastructure or project in Nigeria at such terms as may be determined by the Board in accordance with the policy directed by the Federal Government, being rates and terms designed to support the sustainability and to accelerate operational efficiency of the enterprise or project.”

It further stated that the Bank shall provide such loans either in Naira or other foreign currencies or both for the requirements of the eligible infrastructure or project.

Clause 5(C) empowers the Minister to approve the raising of loans from the local and international capital markets from bilateral or multilateral sources as the market situation permits as well as encourage and promote the development of indigenous healthcare infrastructure, enterprises and projects in Nigeria.

Clause 6 also empowers the Bank to accept deposits and savings from healthcare providers, enterprises, projects, and other institutional depositors; issue its own securities, including debentures and bonds under Federal Government guarantees and issue promissory notes and other bills of exchange for the purpose of raising funds from financial institutions, establish a sinking fund for the redemption of securities issued by the Bank and provide for contributions by it to the sinking fund; carry out research on healthcare finance activities and health and well-being sectors in Nigeria; organise and operate, in collaboration with reputable insurance companies, a healthcare protection system designed to guarantee liquidity to healthcare institutions as well as afford them the opportunity of having liberal premium terms; and do anything and enter into any transaction which in its opinion is necessary to ensure the proper performance of its functions under this Bill.

Clause 7 also empowers the Board to manage and superintend the affairs of the Bank; encourage and promote the development of indigenous healthcare infrastructure, enterprises and projects in Nigeria; do anything and enter into any transaction which in the opinion of the Board is necessary to ensure the proper performance of its functions under this Bill.

The bill when passed through Third Reading will be transmitted to the Senate for concurrence.

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Reps adopt report on establishment of Health Infrastructure Development Bank

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