Economy
FIRS Agrees to Amend Tax Laws on Insurance Firms
By Modupe Gbadeyanka
The Federal Inland Revenue Service (FIRS) has agreed to propose to the National Assembly to amend Section 16 of the Companies Income Tax Act (CITA), which some insurance companies have raised concerns about.
Chairman of FIRS, Mr Babatunde Fowler, made this disclosure last week at a seminar organised in Lagos by Leadway Assurance Limited with the theme ‘Taxation matters in Insurance Value Chain.’
During the programme, Mr Fowler, who was represented by FIRS Regional Coordinator, Mrs Toluwalase Akpomedaye, noted that some provisions of the laws that were unfavourable to the industry would be looked into and amended appropriately to allow a level-playing field to insurers.
He called for a yearly tax interactive session by stakeholders to address tax concerns clogging the insurance business, adding that such sessions have helped foster understanding with other sectors.
Mr Fowler pledged FIRS’ commitment to the industry, stressing that the concerns expressed by operators were being looked into and charged operators to pay tax, adding that the economy needs tax to thrive.
According to him, insurance plays a pivotal role in the economy as it seeks to help individuals and businesses manage risks by transferring and sharing their burden with the insurance carrier.
“Over the years, the insurance industry has undergone significant reforms and is a fairly developed sector. Insurance penetration in Nigeria is still very low and total contribution of the industry to GDP is within the one per cent range. There is need for stakeholders to work together to increase the size and contribution of the sector not only to GDP, but also to tax collection.
“Generally, there are two broad categories of insurance business in Nigeria which includes Life insurance business and non-life insurance. Non-life insurance include fire, accident, motor vehicles, burglary, marine, G-in-transit, personal accident, loss of profit, public liability, workmen compensation, all risks, engineering policies, etc. Nigerian Re-Insurance Corporation acts as insurer to the insurance companies.
“In Nigeria, there are many international and indigenous insurance companies. Insurance like any other economic activity is subject to the tax rules in Nigeria. Under the CITA, non-life insurance companies are taxed on the basis of their gross premiums and interest as well as other receivables less the following: (i) returned premiums (ii) premiums paid on re-insurance (iii) reserve for unexpired risks
“Section 16 of the CITA set out specific rules with respect to the taxation of insurance business. CITA, having identified the specialised nature of the insurance business, dedicates a whole session of the Act to the taxation of the insurance industry, for the treatment of income derived from insurance business. Section 16(8) of CITA allows the companies to deduct a percentage of the premium income into a reserve before arriving at the total profit for tax purposes,” the tax chief said.
Managing Director of Leadway Assurance Limited, Mr Oye Hassan-Odukale, said the tax sessions would help improve the relationship between FIRS and the industry.
He noted that the event was part of his company’s contributions to the development of the industry and the economy.
He agreed that there was need for the industry to have yearly interaction fora with FIRS and Lagos State Inland Revenue Service (LIRS).
On his part, a representative of Pricewaterhousecooper (PwC), Mr Kenneth Erikume, disclosed that tax and insurance are two important aspects of the economy that are yet to live up to their potential, noting that insurance faces a lot of challenges and that strict application would kill the industry.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rallied by 0.28 per cent on Wednesday despite weak investor sentiment, as the bourse ended with 18 price gainers and 38 price losers, implying a negative market breadth index.
The growth recorded yesterday by Customs Street was influenced by the 2.11 per cent rise posted by the energy index, and the 1.79 per cent jump achieved by the banking sector.
The other sectors experienced profit-taking, with the consumer goods losing 1.07 per cent, the insurance counter down by 0.36 per cent, and the industrial goods space down by 0.19 per cent.
Universal Insurance chalked up 10.00 per cent to sell for N1.21, Omatek improved by 9.78 per cent to N2.47, VFD Group expanded by 9.71 per cent to N11.30, CWG appreciated by 9.64 per cent to N21.05, and Livestock Feeds gained 9.56 per cent to close at N7.45.
On the flip side, UPDC REIT lost 10.00 per cent to settle at N6.75, Fortis Global Insurance shed 9.92 per cent to quote at N1.18, Deap Capital depreciated by 9.85 per cent to N5.40, Chams went down by 9.47 per cent to N3.06, and Japaul declined by 8.82 per cent to N3.10.
Yesterday, the All-Share Index (ASI) went up by 562.43 points to 202,585.53 points from 202,023.10 points, and the market capitalisation advanced by N389 billion to N130.404 trillion from N130.015 trillion.
During the session, 1.0 billion stocks worth N40.6 billion exchanged hands in 52,723 deals compared with the 1.1 billion stocks valued at N40.3 billion executed in 78,006 deals a day earlier, indicating an uptick in the trading value by 0.74 per cent, and a shortfall in the trading volume and number of deals by 9.09 per cent and 32.41 per cent apiece.
The activity chart was led by Access Holdings, which sold 233.0 million units valued at N6.1 billion, Fidelity Bank exchanged 113.1 million units worth N2.2 billion, Wema Bank recorded a turnover of 103.3 million units valued at N2.7 billion, Zenith Bank transacted 60.6 million units for N6.5 billion, and Chams traded 47.5 million units worth N154.6 million.
By Adedapo Adesanya
Crude oil plummeted on Wednesday on hopes of the reopening of the Strait of Hormuz after US President Donald Trump agreed to a two-week ceasefire with Iran.
Brent crude futures moderated to $94.75 a barrel, while the US West Texas Intermediate (WTI) crude eased to $94.41 a barrel.
President Trump said on Wednesday that the US will work closely with Iran and will be talking about tariff and sanctions relief with Iran.
However, analysts cautioned that the ceasefire is a temporary two-week reprieve rather than a permanent resolution, and the global energy system remains fragile due to structural damage to regional infrastructure.
Reuters reported that Iran could open the strait in a limited and controlled way on Thursday or Friday ahead of a meeting between U.S. and Iranian officials in Pakistan.
Agence France-Presse (AFP) reported that two ships appeared to have transited the Strait of Hormuz since the US-Iran ceasefire deal. A Greek-owned bulk carrier and a Liberia-flagged vessel both transited the waterway early on Wednesday.
Meanwhile, Israel carried out its heaviest strikes on Lebanon since the conflict with Hezbollah broke out last month, even as the Iran-aligned group paused attacks on northern Israel and Israeli troops in Lebanon under the ceasefire.
Also, Saudi Arabia’s East-West Pipeline, a critical artery bypassing the Strait of Hormuz, was reportedly hit in an Iranian drone attack. Prior to the attack, the pipeline was pumping at its emergency capacity of 7 million barrels per day to bypass the shuttered strait.
The strikes occurred just hours after a US-Iran ceasefire announcement, which has so far failed to halt regional hostilities. Other facilities in the kingdom were also targeted in the wave of strikes, which the Islamic Revolutionary Guard Corps (IRGC) claimed included oil facilities owned by American companies in Yanbu.
US crude stocks rose by 3.1 million barrels to 464.7 million barrels during the week ended April 3, the Energy Information Administration (EIA) said.
By Adedapo Adesanya
The National Insurance Commission has issued new guidelines for the collection, management, and administration of the Insurance Policyholders’ Protection Fund.
In a circular issued to all insurance institutions on Tuesday, the regulator also set May 31, 2026, as the deadline for insurers to submit their assessment returns for the 2025 financial year.
Recall that on August 5, 2025, President Bola Tinubu signed into law the Nigerian Insurance Industry Reform Act ( NIIRA 2025).
This landmark legislation repeals the Insurance Act 2003, and consolidates related provisions, ushering in a modern regulatory framework. It lays a strong foundation for sustainable growth and increased investment in the country’s insurance sector.
The commission said the guidelines were issued in exercise of its powers under the 2025 Act and other existing insurance laws and regulations to provide regulatory clarity, improve guidance, and ensure ease of compliance across the industry.
According to NAICOM, the guidelines establish a comprehensive structure for the operation of the IPPF, which serves as a statutory safety net to protect insurance policyholders in the event of distress or insolvency of a licensed insurer or reinsurer. The framework also provides direction on the reimbursement of loans by insurers and reinsurers.
NAICOM stated, “The guidelines ensure regulatory clarity, guidance and ease of compliance, as it provides a comprehensive regulatory framework for the collection, management, and administration of the Fund, which serves as a statutory safety net designed to protect insurance policyholders against distress and insolvency of a licensed insurer or reinsurer, including guidance for the reimbursement of loans by an insurer or reinsurer.
“Please be informed that the IPPF Assessment Returns in respect of the year 2025 shall be submitted to the Commission not later than 31st May 2026, while subsequent submissions shall be in line with Section 4.3 of the Guideline on Insurance Policyholders Protection Fund.”
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