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 Dipo Olowookere
The portfolios of investors at the Nigerian Exchange (NGX) Limited increased by 0.34 per cent on Monday on the back of buying interest in consumer goods stocks and others.
Business Post observed bargain-hunting activities across the key sectors of the bourse, though the industrial goods index came under profit-taking, causing it to close lower by 0.57 per cent.
However, this did not affect the general outcome of Customs like it did last Friday.
The consumer goods industry went up by 1.31 per cent, the commodity space rose by 0.84 per cent, the energy counter appreciated by 0.69 per cent, the insurance sector grew by 0.52 per cent, and the banking index improved by 0.04 per cent.
As a result, the All-Share Index (ASI) was up by 363.13 points to 106,116.18 points from 105,753.05 points and the market capitalisation increased by N229 billion to N66.694 trillion from N66.465 trillion.
Investor sentiment was bullish yesterday as the bourse ended with 47 price gainers and 16 price losers, indicating a positive market breadth index.
International Breweries soared by 10.00 per cent to close at N8.47, Legend Internet appreciated by 9.97 per cent to N7.50, Cadbury Nigeria advanced by 9.96 pr cent to N29.25, Fidson grew by 9.95 per cent to N20.45, and Eterna chalked up 9.90 per cent to sell for N43.85.
Conversely, Livestock Feeds lost 10.00 per cent to settle at N8.55, Aradel declined y 9.86 per cent to N448.00, Tripple Gee fell by 9.60 per cent to N1.79, John Holt depreciated by 7.94 per cent to N5.80, and Linkage Assurance slumped by 6.15 per cent to N1.22.
During the session, the market participants traded 500.6 million stocks valued at N12.1 billion in 17,637 deals versus the 428.1 million stocks worth N20.2 billion in 14,284 deals, representing a shortfall in the trading value by 40.10 per cent, and a surge in the trading volume and number of deals by 16.94 per cent and 23.47 per cent, respectively.
Access Holdings was the most active equity for the day with a turnover of 60.9 million units valued at N1.2 billion, Fidelity Bank traded 56.1 million units worth N1.1 billion, UBA exchanged 34.5 million units for N1.2 billion, GTCO transacted 33.5 million units valued at N2.2 billion, and Nigerian Breweries sold 28.3 million units worth N1.2 billion.
By Adedapo Adesanya
The price of the Brent crude oil grade declined by $1.01, or 1.5 per cent on Monday to $65.86 per barrel as economic worries from the US-China trade war pressured demand.
Also, the US West Texas Intermediate (WTI) crude was sold at $62.05 a barrel after it went down by 97 cents or 1.5 per cent amid conflicting signals from US President Donald Trump and the Chinese government over what progress was being made to de-escalate a trade war that could weaken global growth.
According to market analysts, the US-China trade war is dominating investor sentiment in moving oil prices, and has overshadowed other developments, including nuclear talks between the US and Iran and possible friction within the Organisation of the Petroleum Exporting Countries and its allies (OPEC+).
On Monday, China lashed out at the US’ negotiating tactics, with Zhao Chenxin, deputy director of the National Development and Reform Commission, saying: “They make up bargaining chips out of thin air, bully and go back on their words.”
The Chinese official was responding to President Trump’s statement earlier in the day that the US would not lower tariffs on China unless it offered up “something substantial”.
This came as US Treasury Secretary Scott Bessent on Sunday did not back President Trump’s assertion that negotiations with China were underway.
Amid this, crude oil inventories in China rose to the highest in almost three years in March, suggesting demand growth was lagging behind refinery processing rates, which hit a one-year high last month as Chinese oil processors took advantage of cheap Iranian and Russian crude.
It was reported that 1.74 million barrels daily went into storage last month in China, citing official data from China, making this the highest rate of storage inflows since June 2023.
Some OPEC+ members are expected to suggest that the group accelerate oil output hikes for a second consecutive month when they meet on May 5.
Earlier this month, there was an unexpected decision by OPEC+ to increase output by 411,000 barrels per day of oil in May, which was three times more than the group originally planned.
By Adedapo Adesanya
The Nigerian Export Promotion Council (NEPC) has announced a 24.75 per cent increase in the value of the country’s non-oil exports, reaching a total of $1.791 billion in the first quarter of 2025.
It stated that the amount surpassed the $1.436 billion generated in the first quarter of 2024.
The Executive Director of the council, Mrs Nonye Ayeni, disclosed the figures while addressing the journalists in Abuja on Monday.
She said the significant growth reflects the resilience and diversification of Nigeria’s export sector beyond crude oil, a shift aimed at reducing the country’s reliance on oil revenue.
According to her, the surge in non-oil exports was driven by increased economic activity in the Agriculture, Manufacturing, and Solid Minerals sectors.
On the US 14 per cent trade tariff, the council says it was positive for the country, adding that it was an opportunity to focus on value addition and increased competitiveness in the global market.
Recall that Nigeria has reiterated plans to boost its non-oil revenues with the Minister of Industry, Trade and Investment, Mrs Jumoke Oduwole, saying the country was stepping up its diversification efforts.
Earlier this month, the Trade Minister said the nation would tackle this challenge with pragmatism, aiming to boost non-oil exports and strengthen economic resilience under President Bola Tinubu’s Renewed Hope Agenda.
Mrs Oduwole had said the US remains a key partner, with bilateral trade reaching N31.1 trillion from 2015 to 2024.
The measures taken by the US presents destabilising challenges to price competitiveness and market access, especially in emerging and value-added sectors vital to our diversification agenda,” the minister explained.
“Government is implementing a range of interventions in policy, financing, infrastructure, and diplomacy to help Nigerian businesses remain competitive amidst regional and global tariff hikes,” Mrs Oduwole said as she outlined Nigeria’s response.
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