New CGT hailed as market friendly
Taiwo Oyedele, who leads the Presidential Fiscal Policy and Tax Reforms Committee, said Nigeria’s revised capital gains tax structure will strengthen market competitiveness and investor appeal while maintaining rates below those applied to corporate income and value-added tax collections. Speaking at a virtual lecture organized by the Capital Market Academics of Nigeria, Oyedele noted that capital gains tax generated N276 billion between 2014 and 2024, compared with N26 trillion from corporate income tax and N22 trillion from value-added tax during the same period.
The reforms will exempt retail investors, pension funds, real estate investment trusts and certain reorganization activities from capital gains obligations while allowing deductions for losses and eliminating withholding tax on bonus shares. Nigerian Exchange Group Chairman Umaru Kwairanga acknowledged market volatility linked to perceptions about the policy, stressing that information management remains essential to prevent distortions. Chartered Institute of Taxation of Nigeria President Innocent Ohagwu urged stakeholders to observe implementation outcomes before criticizing the measures, while economist Sheriffdeen Tella expressed concern about taxation on private bonds potentially directing capital toward government securities.
