Economy
Insurance Sector Stakeholders Seek Improved Tax Regime
By Dipo Olowookere
Government has been called upon to collaborate with stakeholders in the insurance sector to work out ways of streamlining the taxation applicable to the industry.
This appeal was made recently in Lagos at the one-day seminar organized by Leadway Assurance in conjunction with PricewaterhouseCoopers (PwC).
The various major players from the nation’s Insurance industry, who were at the meeting, also sought more support of government to support the industry’s growth and development.
It was gathered that the event was put together to examine Taxation Matters within the Insurance Value Chain.
Executive Director, General Insurance, Leadway Assurance, Adetola Adegbayi, who was one of the panellists, argued that the insurance industry currently suffers from a complex tax structure that has always resulted in multiple taxations without understanding the complexity of insurance placements.
She cited the example of deducting withholding tax from “re-insurance commission” as a fundamental problem because the practice did not recognize the fact that such “commissions” are not earnings but “a reserve against reinsurance credit risk” for premium liabilities passed through the books of the insurer.”
“Brokers, agents, insurers and re-insurers pay different taxes, all of which principally come from the premium paid by one entity – the insured – due to the nature of the insurance value chain,” she further explained.
Adegbayi, therefore, cautioned that unless all stakeholders came together “to collate the entire structure of the tax burden along the insurance value chain,” multiple taxations would continue to pose a threat to the well-being of the industry.
Another panellist, Partner, West Africa Tax Leader at PricewaterhouseCoopers, Mr Taiwo Oyedele, urged the government to support the insurance industry through a review of the specific tax regime that concerns the sector, adding that as the industry was saddled with bearing the nation’s risks, it should not also be burdened with taxes.
According to him, Nigeria’s poor social infrastructure continues to create multiple incidences of socio-economic dislocations that impact heavily on the survival of the insurance sector.
In his words, “the growing rate of crimes in the society increases claims settlement, just as bad roads often lead to accidents, which increase claims. In the same way, poor health care brings about high death rate, thereby pushing claims up.”
While acknowledging the concerns raised by players in the industry, the Federal Inland Revenue Service (FIRS) called for a yearly tax interactive session with the insurance industry to help address all tax related concerns beleaguering the insurance industry.
Executive Chairman of FIRS, Mr Babatunde Fowler, represented at the event by the Regional Coordinator FIRS, Mrs Toluwalase Akpomedaye, noted that such sessions have helped foster understanding with other sectors of the economy. He assured stakeholders that the FIRS was willing to work with the insurance industry to ensure growth and development, stressing that all the tax concerns expressed by operators in the industry were presently being looked into.
Mr Fowler also charged operators in the industry to support the government by paying all necessary taxes, adding that the economy needed taxes to thrive. President, Nigerian Council of Registered Insurance Brokers (NCRIB), Shola Tinubu, also supported the call for an annual tax session in the industry, pledging to take the message to the Nigerian Insurers Association (NIA) and the Institute of Loss Adjusters of Nigeria (ILAN).
In closing, Managing Director, Leadway Assurance Company Limited, Oye Hassan-Odukale, expressed gratitude to attendees for the poignant tax issues raised during the event, and to the regulator representatives for responding succinctly to each one. He further stated that the organization of the event by Leadway was in demonstration of the company’s desire to work with all stakeholders towards ensuring a clearer understanding of tax matters which in turn would foster development in the insurance industry and by extension the economy.
He noted that the proposed annual tax interactive session was a brilliant fall-out of the meeting and expressed the confidence that this would really help improve the relationship between FIRS and the insurance industry.
“I agree that there is need for the industry to have a yearly interactive forum with FIRS and the Lagos State Inland Revenue Service (LIRS),” he submitted.
By Modupe Gbadeyanka
Dangote Petroleum Refinery and Petrochemicals has described reports making the rounds that it was importing finished petroleum products like premium motor spirit (PMS), otherwise known as petrol, diesel, and others into Nigeria as false and misleading.
In a chat with newsmen on Wednesday, the company clarified that what it brought into the country were merely intermediate or semi‑processed materials, which it emphasized is a standard practice within the global refining industry.
Intermediate materials—such as naphtha, straight‑run gas oil, vacuum gas oil (VGO), reformate, alkylate and isomerate—serve as feedstock for additional refining into finished fuels like petrol and diesel, as well as petrochemicals.
The chief executive of the facility, Mr David Bird, told journalists in Lagos that as a state‑of‑the‑art and large‑scale merchant refinery, DPRP refines crude oil and processes intermediate feedstocks into premium petroleum products and petrochemicals that meet the highest international standards, noting that this practice does not amount to importing finished petroleum products.
Mr Bird highlighted that Dangote Refinery operates using a European and Asian merchant refinery model, which integrates advanced refining, blending and trading systems designed to meet modern quality and environmental benchmarks.
“DPRP produces high‑quality fuels aligned with international environmental and health standards. Our gasoline is lead‑free and MMT‑free with 50 parts per million sulphur, while our diesel meets ultra‑low sulphur specifications. These standards help reduce emissions, protect engines, and safeguard public health,” the chief executive stated.
Mr Bird reaffirmed that the Dangote Refinery supplies only fully refined, market‑ready products, adding that semi‑finished fuels are unsuitable for vehicles and are therefore not released into the Nigerian market. Samples of both intermediate feedstocks and fully refined products were displayed to journalists during the briefing.
He further noted that the refinery was established to end years of exposure to substandard fuel in Nigeria by providing products that meet stringent global standards, adding that DPRP’s products are now exported to international markets, highlighting their quality and competitiveness.
The refinery chief stressed the company’s commitment to transparency in its operations and engagements with regulators, urging the media to help properly educate the public on the clear distinction between intermediate products and finished fuel.
“It is unfortunate that some individuals are deliberately spreading misleading narratives about a refinery that has transformed Nigeria and the West African region from a dumping ground for substandard fuels into a hub for high‑quality products,” he said, adding that the refinery’s flexible design allows it to process a diverse mix of crude oils and intermediate feedstocks into premium finished fuels.
Mr Bird assured Nigerians of sustained product availability, noting that the refinery has contributed significantly to easing fuel scarcity, stabilising the naira, and reducing pressure on foreign exchange.
On his part, the Chief Brand and Communications Officer of Dangote Industries Limited, Mr Anthony Chiejina, urged journalists to be precise in their choice of terminology, warning that inaccurate reporting could misinform the public and create unnecessary panic.
By Adedapo Adesanya
Nigeria is projected to move from being the become the third-largest economy in Africa in 2026 from the fourth position it clinched last year, according to data from the International Monetary Fund (IMF).
In the IMF’s World Economic Outlook (October 2025 edition), accessed via its datamapper, it was indicated that Nigeria’s gross domestic product (GDP) at current prices stood at about $285 billion in 2025, placing it behind South Africa, Egypt and Algeria.
South Africa topped the African ranking with a GDP of about $426 billion, followed by Egypt at $349 billion, and Algeria ranked third with $288 billion.
However, the IMF forecasts that Nigeria will overtake Algeria in 2026 as economic output rebounds, driven by higher oil production, improved foreign exchange liquidity and the impact of ongoing economic reforms.
According to the IMF’s projections, Nigeria’s GDP is expected to rise to $334 billion, putting it ahead of Algeria ($284 billion) and making it Africa’s third-largest economy, behind South Africa ($443 billion) and Egypt ($399 billion).
The lender’s outlook reflects expectations that recent reforms, including petrol subsidy removal, exchange-rate liberalisation and fiscal adjustments, will support medium-term growth, despite short-term inflationary pressures.
Africa’s largest economy’s position has shifted in recent years amid currency devaluations, rebasing exercises and macroeconomic headwinds across major economies on the continent. Nigeria in 2024 lost its status as Africa’s largest economy and dropped to fourth place after a series of Naira devaluations and wider reforms.
However, these appear to have brought about macro reliefs in the near term. On January 19, the IMF reviewed its forecast for Nigeria’s economic growth rate upward to 4.4 per cent in 2026. The Bretton Woods organisation revised the rate upward from its initial projection of 4.2 percent.
Prior to that, on January 13, the World Bank also increased its projection for Nigeria’s economic growth rate for 2026 to 4.4 percent from the 3.7 percent forecast in June 2025.
The federal government expects the Nigerian economy to grow by 4.68 per cent in 2026, supported by easing inflation, improved foreign exchange stability and continued fiscal reforms.
According to the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, the country’s inflation, which peaked above 33 per cent in 2024, declined to 15.15 per cent by December 2025, adding that foreign exchange volatility has eased, with the Naira trading below N1,500 to the Dollar, while external reserves rose to $46 billion.
He added that GDP growth averaged 3.78 per cent by the third quarter of 2025, with 27 sectors recording expansion.
By Aduragbemi Omiyale
One of the leading cement firms, Lafarge Africa Plc, has confirmed plans to expand its plants in Gombe and Ogun States to about 5.5 million metric tonnes per annum.
In a notice to the Nigerian Exchange (NGX) on Wednesday, the company said it was strengthening local cement production with the expansion of its Sagamu Cement Plant in Ogun State and Ashaka Cement Plant in Gombe State.
It noted that the upon completion of the expansion projects, the production capacity of the Ashaka Cement in Gombe State would rise to 2 MT per annum, while the Sagamu facility would increase to 3.5 MT per annum.
The two new plants, the statement disclosed, would be dry plants with preheater kilns, vertical raw mills and roller presses for cement mills to make them energy efficient.
The disclosure signed by the company secretary, Adewunmi Alode, further revealed that the plants are expected to improve product availability and enhance Lafarge Africa’s ability to serve customers efficiently across key markets.
This expansion is coming after the announcement made last year that Huaxin Building Materials Group’s had acquired 83.81 per cent of Lafarge Africa and demonstrates their commitment to Nigeria’s infrastructural development.
The chief executive of Lafarge Africa, Mr Lolu Alade-Akinyemi, stated that the expansion projects reflect the company’s long-term confidence in Nigeria’s growth potential and are aimed at supporting Nigeria’s infrastructure and construction needs.
He explained that the project goes beyond capacity growth to deliver operational and sustainability benefits but also supports value creation for our customers and shareholders while contributing to economic activity and job creation across our host communities and the wider construction ecosystem.
“The expansion of our plants is a strategic investment that reinforces Lafarge Africa’s role in supporting national development. By increasing capacity at our flagship plants, we are strengthening our supply chain, improving our responsiveness to market demand, and positioning the business to better support critical sectors such as housing, commercial construction, and infrastructure.
“It enables us to integrate modern production technologies that enhance efficiency, reliability, and environmental performance, in line with our commitment to responsible operations,” Mr Alade-Akinyemi, stated.
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