Insurance Brokers get FIRS’ nod for contributing to tax collection

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4 months ago

From left, Managing Partner, Gbenga Badejo & Co, Mr. Gbenga Badejo; Assistant General Manager (Finance/Compliance), Hogg Robinson Nig Limited, Mr. Kingsley Okoeguale; Guest Speaker and representative of Chairman, Federal Inland Revenue Service (FIRS), Mr. Mathew Gbojubola; President, LASPOTECH Insurance Graduates Club (LIGs), Mr. Abiodun Durodola; Vice President, the Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Funke Adenusi; Chief Finace Officer, Linkage Assurance Plc, Dr. Emmanuel Otitolaiye, and Chief Finance Officer, Scib Nigeria & Company Limited, Mr. Wale Okuyedi at the inaugural lecture organised by LIGs Club held in Lagos.

INSURANCE Brokers have been identified and recognised as the life wirefor the taxes paid by insurance companies.

This was the views of the Coordinating Director Compliance, Federal Inland Revenue Service (FIRS), Dr. Matthew Gbonjubola, who represented the Chairman Federal Inland Revenue Service, Mr. Zacch Adedeji at the inaugural lecture of the LASPOTECH Insurance Graduates Club in Lagos, tagged, “Insurance Taxation in Nigeria, Issues and Solutions.”

Dr. Gbonjubola said brokers have earned value in the insurance service chain as the conduit pipe that channels insurance premiums to insurance companies accounting for 90 percent of the 2024 premium earned.

Also, he said insurance contribution in tax collected in 2024 was N20 billion of the total N21.6 trillion which exceeded its initial target of N19.4 trillion by 11.34 percent.

“The importance of the insurance brokerage sector in the economy and the tax system cannot be ignored. The Nigerian Council of Registered Insurance Brokers is a foremost player in the insurance industry, with over 500 members,” the FIRS Director said.

Mr. Abiodun Durodola, the President of LIGs Club and MD/CEO Multiple Bond Insurance Brokers Limited, said, “Taxation and its payment is a critical component of our industry, and it has far-reaching implications for insurance companies, policyholders, and the economy as a whole. However, the current taxation regime in Nigeria poses significant challenges for insurance operators, from multiple taxation to inadequate tax incentives.

“As we explore the issues and solutions surrounding insurance taxation in Nigeria, I hope that we will not only gain a deeper understanding of the complexities involved but also identify practical steps that we can take to advocate for positive change.”

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