Tinubu Signs Landmark Insurance Industry Reform Bill into Law

Tinubu Signs Landmark Insurance Industry Reform Bill into Law

President Bola Ahmed Tinubu has signed the Nigerian Insurance Industry Reform Bill, 2025 into law — a sweeping legislation aimed at modernising Nigeria’s insurance sector, boosting financial stability, and supporting the country’s goal of becoming a $1 trillion economy. The Nigerian Insurance Industry Reform Act (NIIRA) 2025 repeals and consolidates multiple outdated insurance laws into a single, modern framework for regulating all insurance and reinsurance operations in the country. Under the Renewed Hope Agenda for the Insurance Sector, the new Act introduces: The law mandates the National Insurance Commission (NAICOM) to enforce its provisions and drive reforms that will improve insurance penetration nationwide. According to the Presidency, the NIIRA 2025 will attract new investments, enhance transparency, spur innovation, and position Nigeria as a leading insurance hub in Africa.

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FG Abolishes Consolidated Relief Allowance Introduces Rent-Based Tax Relief

By Kamal Yalwa August 1, 2025 The Federal Government has scrapped the longstanding consolidated relief and personal relief allowances under Nigeria’s personal income tax system, replacing them with a new rent-based deduction framework, as introduced in the newly enacted Tax Act. According to the law, an individual’s taxable income will now be computed as the total income minus total deductions, with income sources including profits from business or trade, employment and investment income, as well as capital gains from the disposal of chargeable assets. Previously, tax computation included a consolidated relief of ₦200,000 or 1% of gross income (whichever is higher), plus a 20% personal relief of gross income. Under the new provisions, these have been abolished and replaced with a rent relief formula aimed at providing targeted tax benefits. “Rent relief of 20% of annual rent paid, subject to a maximum of ₦500,000, whichever is lower,” the Act states.The relief is limited to tenants, with no provision made for homeowners. New Relief to Favour Low-Income Earners Speaking to TheCable, tax consultant John Nwokolo explained that the new system is designed to favour lower-income earners, while high-income individuals will pay more under the revised Pay-As-You-Earn (PAYE) framework. “Those earning below ₦25 million annually will benefit more from the new structure,” Nwokolo said, “while those earning above ₦25 million will face higher tax burdens compared to the previous law.” For example, a person earning ₦6 million annually and paying ₦1 million in rent will receive a rent relief of ₦200,000 (20% of rent), making the taxable income ₦5.8 million, and a tax of ₦834,000.Under the old law, with ₦1.2 million in total relief, the taxable income would have been ₦4.6 million, leading to a tax of ₦896,000—₦62,000 more in taxes than under the new law. Key Provisions of the New Tax Act The Federal Inland Revenue Service (FIRS) and state tax authorities are expected to issue further guidance on the implementation of the new tax provisions.

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Abiodun signs N1.054trn appropriation bill into law

The Ogun State Governor, Prince Dapo Abiodun, has signed the N1.054 trillion 2025 State Appropriation Bill into law. The signing, which took place at the Governor’s Office in Oke-Mosan, Abeokuta, was witnessed by the Speaker of the House of Assembly, Rt. Hon. Oludaisi Elemide, principal officers of the House, the Deputy Governor, and members of the State Executive Council. Speaking after receiving the clean copies of the Bill, Governor Abiodun announced that his administration would, in the coming month, sign the partnership agreement with potential partners for the development of the Olokola Sea Port. He said the government would also focus on the provision of more basic infrastructure with the signing of more Memoranda of Understanding (MoU) with private corporate bodies in renewable energy, agriculture, and other sectors that would boost the State’s economy. He said: “It is my pleasure to announce to you that in the coming month, we will be signing the partnership agreement with potential partners in our port development. The Olokola Port is back on track. “In the coming year, you will see us signing more Memoranda of Understanding (MoU) with private players in the areas of renewable energy, energy transition, and agriculture, particularly animal husbandry. We intend to join the league of those producing beef and pork, not just for domestic consumption, but for export. “We will continue to provide more infrastructure, particularly roads, in every local government in the State. We will continue in our stride to provide the right infrastructure and the right situation to ensure that students in Ogun State learn in a conducive environment. We will continue to pursue our healthcare program in primary health care, secondary, and tertiary, and of course, our policy on ‘grow what you eat and eat what you grow.’ We are going to be more aggressive in the area of agriculture.” While noting that his administration would be relentless in the pursuit of infrastructure that would engender more socio-economic development, Governor Abiodun revealed that emphasis on arterial roads like the Ijebu-Ode-Epe, Sagamu-Abeokuta, Atan-Lusada-Agbara, Ota-Abeokuta, and Ilaro-Owode roads had played important roles as they had helped to improve the State’s Internally Generated Revenue through the influx of more people and industries. He acknowledged the difficulties people are going through due to the bold policies of President Bola Ahmed Tinubu’s administration to pull the country out of the woods but maintained that his administration had risen to the occasion by providing needed palliatives to cushion the effects and help the people navigate the period. “I want to assure you that we can only hope for more wins in the future. It has been a very difficult year for us all, not just as a state but as a country. Our President, Bola Ahmed Tinubu, started his tenure with very bold reforms that have resulted in some unintended consequences that we must all endure so that we can have a country that is solvent,” he added He appreciated members of the Assembly for the speedy passage of the Bill after due diligence and commended their high level of commitment to their constituents and the state, noting that their collaboration with the executive arm had led to the state growing in leaps and bounds. Speaking earlier, the Speaker, Rt. Hon. Oludaisi Elemide, noted that the speedy passage of the Bill was in keeping with the promise made to the governor when he presented the Bill to the assembly on the 4th of December this year, adding that no budget bill had been passed before Christmas in the past. While appreciating the governor for the facelift given to the Assembly Complex, Rt. Hon. Elemide said his colleagues worked tirelessly to ensure that the budget was passed on time so as to keep the wheels of the state’s progress moving.

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