Nigeria’s capital market has been gripped by uncertainty following renewed concerns over the proposed 25% Capital Gains Tax (CGT) on share disposals, which is expected to take effect in January 2026.
The development follows recent clarifications by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a stakeholder engagement session organized by the Nigerian Exchange Group (NGX) in Lagos.
According to Oyedele, the new tax regime will apply to investors who sell shares and reinvest the proceeds in fixed-income securities or other non-equity assets. Under the proposed structure, such transactions will attract a 25% CGT on realized capital gains.
He, however, emphasized that retail investors will be largely exempt, noting that the ₦150 million annual exemption threshold effectively protects 99.9% of individual investors from the new charge.
“Only very few big investors cross that threshold, mostly institutional players or high-net-worth individuals,” Oyedele stated.
The announcement has triggered widespread debate among capital market stakeholders, who fear that the implementation could dampen trading activity, reduce market liquidity, and discourage portfolio diversification.
Analysts have urged the government to provide further guidance and transitional provisions to minimize disruptions, warning that the measure, if poorly executed, may undermine investor confidence and slow the recovery momentum in Nigeria’s equities market.
