By Adedapo Adesanya

The  (ASHON) has called on the federal government to review the recently introduced Capital Gains Tax on securities, that comes into effect in January due to fears it will derail recoveries in the capital market.

This call was made by ASHON’s newly inaugurated Chairman, Mr Seinde AdenagbeAssociation of Securities Dealing Houses of Nigeria, on Sunday. He was officially decorated as the group’s 6th chairman in Lagos on Friday.

Under the new rules, the previous fixed 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.

Speaking on the development, Mr Adenagbe warned that the sudden policy change threatens investor confidence and undermines market stability, evidenced by a N6 trillion loss in Nigerian Exchange’s market capitalisation.

“Whatever is true, honest, just, pure, lovely, and of good report should define our conduct. Our word must remain our bond,” Mr Adenagbe said in a statement on Sunday, urging President Bola Tinubu to urgently review the CGT policy.

He noted that market capitalisation had climbed to N95 trillion by October before the sharp decline.

Mr Adenagbe also highlighted that while the Securities and Exchange Commission plans to recapitalise operators, the exercise should strengthen market efficiency rather than eliminate firms through unrealistic capital thresholds.

“Capital raising should not lead to the demise of promoters but guarantee the survival of firms, employees, and the broader ecosystem,” he added.

He outlined a 10-point agenda aimed at reinforcing professionalism, ethics, and governance across the Nigerian capital market, including improved investor education, technology adoption, and unified advocacy among market operators.

Other stakeholders have also voiced concerns including the chief executive of NGX, Mr Jude Chiemeka, who recommended that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”

By Aduragbemi Omiyale

A deliberate shift toward a more predictable and market-aligned rollout of the newly enacted capital-gains-tax (CGT) provisions has been taken by the federal government after extensive technical engagements with key capital-market institutions, including the Securities and Exchange Commission (SEC) and Nigerian Exchange Group (NGX Group).

This resulted in the establishment of a National Tax Policy Implementation Committee (NTPIC) by the federal government, reflecting policymakers’ recognition of the market’s role in sustaining liquidity, price discovery and long-term capital formation.

The committee, chaired by leading tax and fiscal-policy expert, Mr Joseph Tegbe, will work on giving clarity on the matter.

Its mandate includes ensuring transparent guidelines, broad stakeholder consultation and an execution framework that minimizes market disruption while reinforcing confidence among domestic and foreign investors.

Mr Tegbe said the government would avoid policies that risk disrupting market activity or business investment.

“Implementation of the new tax laws will be fair, transparent and humane. We will not roll out these policies in a way that cripples businesses or investors. Stakeholder engagement will be central to this process,” he said at the inauguration.

The shift follows sustained engagements by NGX Group and the SEC, during which market operators outlined the potential implications of a rapid CGT rollout on liquidity, investor sentiment and the market’s competitiveness at a time when Nigeria is seeking deeper pools of domestic and foreign capital.

The chief executive of NGX Group, Mr Temi Popoola, commended the government’s approach, noting that the group, in collaboration with the SEC, has consistently advocated for a data driven approach that balances fiscal objectives with the need to preserve market depth.

“We support the modernisation of Nigeria’s tax system, but reforms of this scale must be carefully calibrated to protect liquidity, sustain participation and maintain competitiveness,” he said.

“Our engagements with government have focused on ensuring that implementation supports the capital market’s role in long-term investment and economic growth,” he stated further.

Mr Popoola added that global competitiveness hinges not only on policy intent but also on the precision of execution, particularly for emerging markets seeking cross-border flows.

The government’s consultations intensified after the Honorable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, visited NGX Group, where market operators outlined the potential unintended consequences of an abrupt CGT rollout.

Analysts view the inauguration of the NTPIC as a constructive signal to investors, indicating that authorities intend to anchor fiscal reforms in evidence and consultation, rather than speed alone.

Both SEC and NGX Group have pledged continued collaboration with the committee to ensure that the eventual CGT implementation supports confidence, broadens participation and aligns with long-term capital-market development objectives.

By Adedapo Adesanya

The Nigeria Export Processing Zones Authority (NEPZA) has appealed to the federal government to grant operators within Nigeria’s Special Economic Zones (SEZs) a 10-year exemption from the newly introduced tax laws, which is due to commence in January 2026.

According to Mr  Olufemi Ogunyemi, Managing Director of NEPZA, represented by Mrs Haleema Kamba, Director, Corporate Service, during a virtual stakeholder dialogue organised by the Federal Ministry of Industry, Trade and Investment, said that it would enable them to adjust their operations to the evolving regulatory environment.

He said that the request had become necessary in view of the persistent concerns raised by operators across local and international platforms, adding that the uncertainty was negatively affecting efforts to attract Foreign Direct Investment (FDI) into the country.

According to him, tax incentives remain central to the Special Economic Zone scheme

“A 10-year (sunset period) will offer stability, predictability and stronger linkages with the domestic economy. I am making this special appeal to the chairman of the Federal Inland Revenue Service for a sunset period of approximately 10 years for all our investors.

“We hope the Chairman will consider this for the benefit of the scheme,” he said.

Mr Ogunyemi said that aligning the incentives with global best practice would help Nigeria strike a balance between revenue collection and the commitments made to investors.

He said that the country’s 63 Free Trade Zones and more than 700 enterprises operating within them remained crucial to Nigeria’s industrialisation and export strategy.

He said that the Zones’ revenue potential would only be fully realised if the scheme continued to operate under a competitive incentive structure capable of attracting and retaining investors for sustainable operations.

“Nigeria is open for business, and NEPZA will continue to stand with FIRS and other relevant stakeholders through this transition, ensuring stability, competitiveness and sustained investor confidence,” he said.

The managing director also emphasised the need for clarity and certainty in the tax environment, as investors prepare their 2026 business plans.

The NEPZA boss described the dialogue as a demonstration of the government’s commitment to transparency and collaboration.

In her remarks, the Minister of Industry, Trade and Investment, Mrs Jumoke Oduwole, reiterated the importance of ongoing reforms.

Mrs Oduwole said that the national revenue framework, Special Economic Zone incentives and updated Financial Reporting Council compliance requirements would create a competitive environment for trade, investment and economic growth.