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Mandatory group life insurance in Nigeria: an employer guide

Section 4(5) of the Pension Reform Act 2014 requires employers covered by the Act to maintain group-life insurance of at least three times each employee’s annual total emolument.

What to check

Reconcile the policy population and payroll, calculate annual total emolument correctly, confirm the three-times minimum, pay premiums promptly and keep evidence of cover.

What could change the answer

The duty is under the Pension Reform Act, not the Employee Compensation Act. Group life generally applies to employees in active service and does not replace other statutory cover.

A practical next step

Ask HR, payroll and the insurer to complete a documented headcount and benefit reconciliation before renewal.

Reviewed 2026-09-09