Salamatu Ejembi, Lagos
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has called on Nigeria’s business community to remain open-minded and seek informed analysis on the revised Capital Gains Tax (CGT) framework as the new tax law takes effect in January 2026.
Oyedele made the appeal while speaking at a lecture series organised by the Capital Market Academics of Nigeria (CMAN), where he delivered a presentation on “Nigerian Tax Acts 2025 and the Nigerian Capital Market (Focus on CGT).”
He explained that the new progressive CGT regime was crafted to promote fiscal equity and is ultimately more investor-friendly than perceived.
He cautioned stakeholders against reacting to misinformation or early market panic.
“The market is vulnerable to false information in the short term; the market is often right in the long run, but some investors may have lost their livelihood in the short run,” he said.
“Investment in stocks is not a function of tax rate or exemptions; it is based on attractive after-tax risk-adjusted returns.”
Oyedele noted that the tax reforms would ease the overall tax burden, increase disposable income, moderate inflation, and enhance economic development incentives, ultimately supporting Nigeria’s broader growth agenda.
Read Also: Government Promises Balanced Approach to Capital Gains Tax
Nigerian Capital Market Still Underperforming — Oyedele
Assessing the state of Nigeria’s capital market, Oyedele said that although progress had been made, significant gaps remain when benchmarked against the country’s economic size and potential within Africa.
He observed that at about $40 billion as of December 2024, Nigeria’s market capitalization remains low relative to peers such as South Africa, Mauritius, Morocco, and Kenya.
“Nigeria accounts for almost 3% of the global population but contributes less than 1% to global trade. A vibrant capital market is crucial for financing development, trade, and commerce,” he added.
He maintained that the Nigerian capital market must evolve into a more efficient platform capable of driving economic development, resource allocation, a stronger naira, wealth creation, and greater regional influence.
Implementation Delay
President of the Chartered Institute of Stockbrokers (CIS), Mr. Oluropo Dada, urged the government to undertake deeper market assessment and wider stakeholder consultations before rolling out the CGT.
While the institute is not opposed to the tax, Dada warned that immediate implementation could hurt investor confidence, heighten market volatility, and threaten Nigeria’s ambition of achieving a $1 trillion economy and double-digit growth.
He recommended delaying implementation to allow for clearer transition guidelines.
Group Chairman of the Nigerian Exchange Limited (NGX), Dr. Umaru Kwairanga, said much of the market reaction so far had been driven by perception rather than fact.
He noted that many commentators assumed the new tax laws would lead to a steep CGT hike, creating unnecessary anxiety.
“Perception matters a lot in financial markets and can move markets long before any real action takes place. We have seen that in the recent volatility. Managing information properly is essential to prevent flawed perceptions that could impact the economy,” he said.
Kwairanga reaffirmed the capital market’s readiness to mobilise long-term financing to support the government’s Renewed Hope Agenda but stressed that fiscal reforms must be “thoughtful, inclusive, and aligned with market realities.”