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Employers: Life Insurance Premiums Are Tax-Deductible Business Expenses

An employer’s tax treatment for group-life premiums depends on the current Nigeria Tax Act, the business purpose, the employee arrangement and adequate documentation; it should not be treated as an automatic blanket deduction.

What to check

Reconcile the policy schedule to the payroll population, retain invoices and payment evidence, and document how the benefit meets employment and statutory obligations.

What could change the answer

Group-life compliance and corporate tax deductibility are separate questions. A compliant policy can still be documented poorly for tax purposes.

A practical next step

Have the company’s tax adviser review the current treatment and keep the insurer’s certificate with the annual tax working papers.

Reviewed 2026-09-09