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Under the new rules, the flat 10 per cent CGT rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will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 Adedapo Adesanya
The Nigeria Customs Service (NCS) is seeking a reduction in import duty exemptions, which rose to N34 trillion, limiting its ability to increase its revenue generation threshold.
The Comptroller-General of the Customs Service, Mr Adewale Adeniyi, disclosed that the value of import duty exemption certificate approvals increased to that level in 2025, describing the policy as one of the major factors restricting its revenue generation.
At an investigative session of the Senate Committee on Finance with revenue-generating agencies in Abuja on Monday, Mr Adeniyi explained that government fiscal policies have continued to impact the revenue-generating capacity of the Customs Service, both positively and negatively.
“The NCS would have generated significantly higher revenue over the years if not for government-approved import duty waivers and other external factors affecting collections,” he said.
He added that the Import Duty Exemption Certificate scheme, introduced in March 2020, accounted for about N34 trillion in approvals in 2025, with nearly 60 per cent covering duty-free importation of military hardware due to Nigeria’s prevailing security challenges.
Other government-backed duty waivers, he noted, covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes.
While acknowledging the impact of the waivers on Customs revenue, Mr Adeniyi argued that fiscal policy should not be assessed solely on the basis of revenue generation but also on its broader economic and social objectives.
He, however, urged the federal government to establish stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
The committee also expressed displeasure over the absence of several heads of government agencies invited to the hearing, including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and the Federal Medical Centre (FMC), Jabi.
The Chairman of the Senate Committee on Finance, Mr Sani Musa, warned that the affected chief executives must appear at the committee’s next sitting or face severe sanctions under the Senate’s rules.
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By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.40 per cent on Monday, July 13, buoyed by buying interest in 11 Plc, Central Securities Clearing System (CSCS) Plc and UBN Property Plc, which offset the profit-taking in Food Concepts Plc, the parent company of Chicken Republic.
11 Plc gained N20.69 to end at N227.64 per share compared with last Friday’s price of N206.95 per share, CSCS Plc grew by N1.83 to N91.48 per unit from N89.65 per unit, and UBN Property Plc added 1 Kobo to sell at N1.81 per share versus N1.80 per share.
On the flip side, Food Concepts Plc depreciated by 24 Kobo to close at N2.45 per unit, in contrast to the preceding session’s N2.69 per unit.
As a result, the market capitalisation increased by N9.2 billion to N2.587 trillion from N2.578 trillion, and the NASD Security Index (NSI) improved by 15.33 points to 4,311.67 points from 4,296.34 points.
Yesterday, the volume of securities traded by investors surged by 615.9 per cent to 9.1 million units from the previous 1.3 million units, and the value of securities rose by 997.1 per cent to N320.4 million from the preceding session’s N29.2 million, while the number of deals decreased by 12.5 per cent to 28 deals from last Friday’s 32 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 73.9 million units exchanged for N5.2 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
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