Stakeholders in Nigeria’s tax and insurance sectors have stressed that compliance will be critical to the success of the newly signed Tax Reform Act 2025 and the Insurance Reform Act.

They stated this at the Tax Reform Act and Nigeria Industry Reform Act event organised by the Nigerian-German Chamber of Commerce (NGCC) with the theme, ‘Tax Reform Act and Nigeria Insurance Industry Reform Act: Implementation for Business.’

In her welcome address, NGCC Director General, Marilyn Rapu, said the chamber chose to spotlight the two laws because of their direct impact on business operations.

“With enforcement dates already announced, the timing was critical. Businesses need to be aware, prepared, and positioned to comply. By addressing this now, NGCC ensures its members are empowered to adjust early and strategically,” Rapu said.

She noted that the programme was designed to clarify the real impact of the laws, break down compliance requirements, and provide businesses with practical steps to prepare ahead of the 2026 implementation deadline.

Speaking on the Tax Reform Act, Mrs. Kelechi Okparaocha of WTS Blackwood Stone, represented by Mr. Tobiloba Adekoya, described the reform as a major step towards eliminating complexities in Nigeria’s tax framework.

“Previously, we had about 20 different legislations with tax provisions. Now, we have just four, making it easier to navigate. These four laws form the pillars of Nigeria’s new tax system,” Adekoya said.

He identified the four as the Nigerian Tax Administration Act (NTA), Nigerian Relief Establishment Act (NRA), Nigerian Revenue Establishment Act (NRE), and Joint Revenue Board of Nigeria Establishment Act (JRB) referring to them as the “fantastic four.”

Adekoya explained that the reforms introduce penalties for non-compliance, with potential liabilities extending to directors and decision-makers.

He stressed that compliance is at the heart of the reform, warning organisations to review tax strategies and strengthen engagement with new institutions to avoid risks.

On the Insurance Act, Jonathan Aluju, a lawyer at Olaniwun Ajayi LP, described the reform as long overdue, noting that it consolidates outdated laws such as the Motor Vehicles Authority Act of 1945, the Marine Insurance Act of 1962, and the National Insurance Corporation Act of 1969 into a single, modern framework.

“For a very long time, our insurance framework was far behind global standards. This reform closes that gap and signals to international partners that Nigeria is ready for stable, cross-border partnerships,” Aluju said.

Aluju warned that compliance will be rigorous, with the National Insurance Commission (NAICOM) set to issue enforcement guidelines.

He urged companies to strengthen training, compliance systems, and governance processes to avoid sanctions, while also highlighting opportunities for mergers, acquisitions, and collaborations in insurance technology and risk management.