Economy
New Capital Gains Tax Will Attract More Investors, Boost Confidence—Oyedele
By Adedapo Adesanya
Nigeria’s new Capital Gains Tax (CGT) framework will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance, according to the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele.
Mr Oyedele said the reform, which takes effect from January 1, 2026, represents one of the most significant improvements to Nigeria’s tax system in recent years.
He noted that contrary to misinformation circulating in some quarters, the new CGT rules are designed to protect small investors, encourage reinvestment, and align with international best practices, rather than impose additional burdens on the market.
The reform “reduces investment risks, protects small investors, encourages reinvestment, and ensures that high-income earners contribute their fair share without discouraging market participation,” he said in an explainer posted on X, formerly known as Twitter.
Under the new rules, the flat 10 per cent CGT rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will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.
The tax titan also noted that the framework aallows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
Retail investors and tax-exempt institutions such as Pension Funds Administrators (PFAs), Real Estate Investment Trusts (REITs), and NGOs will not be subject to CGT. Similarly, small companies with annual turnover below N100 million and assets under N250 million will pay zero percent CGT.
Further, gains from investments in labelled startups made by venture capitalists, private equity firms, accelerators, or incubators will also be exempt.
For individuals and firms whose proceeds exceed the N150 million threshold within 12 months, the law provides relief through reinvestment. If the proceeds are reinvested into shares of Nigerian companies within a year, such transactions will enjoy full exemption from CGT.
Additionally, gains from the disposal of foreign shares repatriated through Central Bank of Nigeria (CBN) channels will not attract the tax.
In a move to ensure fairness, the cost base for calculating gains will be reset to the higher of the actual acquisition cost or the market value as of December 31, 2025. This prevents retrospective taxation on gains that accrued before the law’s commencement.
Resident investors are required to register for tax identification numbers and pay applicable taxes to their state of residence or the Nigeria Revenue Service (NRS), depending on whether they are individuals or corporate entities.
However, non-resident investors who earn only passive income such as dividends or capital gains will not need to obtain a Tax ID.
He also clarified that the government may also introduce withholding mechanisms through brokers or exchanges to simplify compliance and collection.
Business Post reports that tax filing deadlines remain straightforward: individuals must file by March 31 of the following year, while companies have six months after their financial year-end to do so. Non-resident investors will pay upon disposal of shares, unless they choose to reinvest within the same year.
Mr Oyedele emphasized that the reform is not a revenue-raising measure but a strategic policy move to improve fairness, competitiveness, and long-term investor confidence in Nigeria’s financial markets, adding that gains realised before the end of 2025 would be “grandfathered,” meaning they will only be taxed under the existing law when disposed of, preserving investor rights during the transition period.
He further clarified that corporate reorganisations such as mergers, acquisitions, or internal restructurings are exempt from CGT, and investors are expected to maintain proper records of acquisitions, disposals, and related costs for audit purposes.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rallied by 1.06 per cent on renewed investor confidence after surviving a run of losing streaks.
Yesterday, some performance indicators were better compared with the previous session, with the All-Share Index (ASI) chalking up 2,540.08 points to settle at 240,743.19 points versus Monday’s 238,203.11 points, and the market capitalisation gained N1.649 trillion to close at N154.484 trillion, in contrast to the preceding day’s N152.835 trillion.
As for the sectoral performance, the energy sector was down by 0.09 per cent, but the loss was offset by the gains recorded by the others.
The insurance counter grew by 2.84 per cent, the banking and the consumer goods indices rose by 0.18 per cent each, and the industrial goods segment expanded by 0.07 per cent.
Unlike on Monday, the market breadth index was positive on Tuesday, with Customs Street closing with 33 price gainers and 23 price losers, indicating bullish investor sentiment.
Guinea Insurance improved by 10.00 per cent to N1.10, International Energy Insurance advanced by 9.89 per cent to N6.11, Tripple Gee soared by 9.82 per cent to N3.69, Cornerstone Insurance climbed 9.76 per cent to N6.75, and Sovereign Trust Insurance surged by 8.63 per cent to N2.14.
On the flip side, Red Star Express dropped 9.96 per cent to trade at N24.85, Premier Paints depreciated by 9.93 per cent to N6.43, Trans-Nationwide Express declined by 9.82 per cent to N4.04, Royal Exchange shrank by 9.38 per cent to N1.45, and Abbey Mortgage Bank crashed by 9.29 per cent to N28.12.
Market activity improved during the trading day, with market participants transacting 564.9 million shares valued at N39.4 billion in 49,230 deals compared with the 475.8 million shares worth N36.5 billion traded in 63,567 deals a day earlier, implying a shortfall in the number of deals by 22.55 per cent, and a rise in the trading volume and value by 18.73 per cent and 7.95 per cent, respectively.
Fidelity Bank led the activity chart after a turnover of 59.4 million units worth N1.1 billion, Zenith Bank traded 49.5 million units valued at N5.9 billion, Dangote Sugar exchanged 43.1 million units for N3.1 billion, Chams sold 39.5 million units worth N156.5 million, and Access Holdings transacted 30.7 million units valued at N703.6 million.
By Adedapo Adesanya
The prices of the two major crude oil grades further declined on Tuesday as investors kept a close watch on crude flows through the Strait of Hormuz following signs of progress in US-Iran peace talks.
Brent futures lost 82 cents or 1.1 per cent to trade at $77.08 per barrel, while the US West Texas Intermediate (WTI) futures gave up 65 cents or 0.9 per cent to sell for $73.21 a barrel.
The market continued to edge lower after the US granted Iran a 60-day sanctions waiver following initial peace talks, while hostilities in Lebanon eased under a broader agreement.
Investors are cautiously watching how quickly Middle Eastern producers can resume oil production and exports following damage from the war, and whether more ships will enter the region.
After US Vice President JD Vance left Switzerland on June 22 after a round of talks over the weekend, President Donald Trump issued a warning to Iran that “I will do what I have to do” if it does not stick to its agreement with the US.
Mr Vance had noted movement on a framework toward reaching a final peace deal within 60 days, including the guarantee of safe passage through the Strait of Hormuz, an end to fighting in Lebanon, and Iran’s acceptance of visits by international nuclear inspectors.
On Tuesday, Oman and Iran agreed to press on with discussions about the future administration of navigation in the Strait of Hormuz, through which 20 per cent of crude and liquified natural gas (LNG) passes.
US Secretary of State Marco Rubio said on Tuesday that Iran would not be able to charge tolls in the key waterway as part of any final agreement with the United States, saying such an arrangement would violate international law.
According to the International Energy Agency (IEA), the world has lost millions of barrels of oil and gas supply since the Iran war closed the strait, putting the shut-in data at more than 14 million barrels per day of oil output or about 14 per cent of world demand.
Meanwhile, President Trump claimed that 19 million barrels of oil flowed out of the strait on Monday, and pointed to falling oil prices in a social media post on Tuesday.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 765,000 barrels in the week ending June 19. Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Aduragbemi Omiyale
The marketing and promotion of the planned initial public offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE has been banned by the Securities and Exchange Commission (SEC).
A statement from the apex capital market regulator on Tuesday emphasised that it had yet to receive any application for such an offer or approve the purported IPO.
SEC noted that it had become aware of advertisements, flyers, digital banners and targeted electronic mails circulating on social media platforms and investment channels concerning a supposed securities offering by the refinery.
It expressed concern over the involvement of some Registered Capital Market Operators (CMOs) in what it described as an “unwholesome and manipulative exercise” of actively soliciting advance subscriptions for an offering that has not been presented to the commission.
“No application for the registration of an IPO or public offer of shares of the Refinery has been filed with or approved by the commission,” the agency noted, adding that the ongoing pre-marketing activities were “capable of misleading investors, distorting market expectations, creating information asymmetry and generally undermining the integrity of the capital market.”
It further stated that the marketing campaign and invitations to “create accounts”, “pre-fund,” or “secure guaranteed allocations” amounted to market manipulation and constituted “serious violation of the Investments and Securities Act.”
Consequently, the SEC directed all Registered Capital Market Operators, particularly stockbrokers and digital platform promoters, to immediately stop all promotional activities.
It also directed them to “cease with immediate effect from publishing, reposting, or distributing any promotional material, flyer, or commentary relating to the acquisition or allocation of shares in the Refinery.”
The commission further ordered operators to “remove or take down all such unauthorised marketing materials from websites, social media handles (including X, LinkedIn, Instagram, Facebook etc.), and messaging groups within twenty-four (24) hours of this notice.”
The regulator further instructed operators to desist from accepting deposits, commitments, account openings or expressions of interest from investors for the purported public offering and to “reverse and refund all funds already collected in connection with this purported offering to clients within twenty-four (24) hours of this notice.”
The organisation warned that defaulters would face sanctions as non-compliance would attract penalties under the Investments and Securities Act, 2025 and the SEC Rules and Regulations.
Advising investors to exercise caution, the SEC said members of the public should “rely only on formal, official pronouncements issued directly by the commission through its official channels.”
It warned that “all such high-pressure marketing tactics, or transfer of funds to any operator for ‘pre-IPO’ placement should be ignored as they did not receive the commission’s approval.”
SEC assured that if it eventually receives and clears an application for a public offering by the refinery, an approved prospectus would be made available to investors in line with the provisions of the Investments and Securities Act, 2025.
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