The Chief Executive Officer of 11PLC, Otunba Adetunji Oyebanji, has expressed concern that Nigeria’s recent tax reforms, particularly the steep rise in capital gains tax (CGT), may discourage major investments in the country.
Speaking in Lagos ahead of the 2025 Annual Directors’ Conference, Oyebanji warned that the new tax regime introduced under the Nigeria Tax Act (NTA) could undermine investor confidence in high-capital projects.
According to him, the increase in CGT from 10 percent to 30 percent marks a significant shift in fiscal policy that alters the investment climate. He noted that while governments around the world use tax reforms to raise revenue, they typically balance such measures with incentives to maintain competitiveness.
“One of the areas we focused on was the capital gains tax which has increased significantly. We are concerned that the economy is now more sensitive to high capital investments because some of the reliefs for the lower level of capital gains tax that existed before are going to be removed,” Oyebanji said.
He cautioned that the sharp increase could force potential investors to look elsewhere, especially in sectors requiring substantial upfront commitments such as energy, infrastructure, and technology. “Foreign direct investment is highly responsive to tax regimes. A sudden escalation like this may put Nigeria at a disadvantage compared to other emerging markets,” he added.
The federal government has defended the NTA as a critical tool to boost non-oil revenue and plug fiscal deficits, arguing that the reforms are designed to improve fairness in the tax system. However, business leaders and industry analysts have raised concerns about the timing and scale of the changes, particularly at a period when the economy is still recovering from sluggish growth, high inflation, and foreign exchange volatility.
The issue of tax competitiveness is expected to feature prominently at the Annual Directors’ Conference, where corporate leaders, policymakers, and regulators will deliberate on strategies to align Nigeria’s fiscal framework with long-term investment and growth objectives.
