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Group life in Nigeria: compliance first, tax review second

Nigerian employers should treat group-life compliance and tax as two connected but distinct workstreams: meet the Pension Reform Act obligation, then document the premium’s tax treatment under current law.

What to check

Confirm active employees, annual total emolument, at least three times that amount in cover, premium payment, policy dates and evidence supplied to PenCom where required.

What could change the answer

The statutory group-life duty comes from the Pension Reform Act 2014, not the Employee Compensation Act. Tax outcomes still require current advice and records.

A practical next step

Run a payroll-to-policy reconciliation before renewal and have the company’s pension, legal and tax advisers sign off their respective areas.

Reviewed 2026-09-09