A proposal to exempt foreign insurance companies from paying tax on premiums generated from insurance business written in Nigeria has triggered concern in the insurance industry. They argue that granting tax exemptions to foreign insurers while local companies continue to bear the full tax burden would undermine the reform aimed at building a strong, resilient domestic insurance market. At the heart of the concern is the suggestion that exempting foreign insurers from tax on premiums sourced from Nigeria could help deepen insurance penetration. Daudu explained that while foreign insurers play an important role, especially in large or specialised risks, tax parity remained essential. If foreign companies are allowed to underwrite Nigerian risks tax-free, local firms will struggle to compete on pricing, and many could be forced out,” he said.

Source: The Guardian January 12, 2026 04:24 UTC