Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, says over 99 per cent of investors in Nigeria’s capital market have portfolios valued below ₦150 million, a situation that leaves the Federal Government with limited revenue from Capital Gains Tax (CGT).
Speaking on Channels Television’s Business Morning programme on Wednesday, Oyedele said misconceptions around the proposed CGT reforms have created unnecessary panic among investors.
“The starting point is to try and correct some of the misinformation around the tax reform and the capital gains tax implications for the capital market,” he said. “I think it’s oversimplified when people say we will increase the CGT rate from 10 per cent to 30 per cent. That is not correct. It is a reform, and that reform means different things to different people.”
He clarified that more than 99 per cent of investors on the Nigerian Exchange (NGX) have portfolios below ₦150 million and will therefore be completely exempted from capital gains tax starting January 2026.
“For the majority of investors in the capital market, and that would be more than 99 per cent of investors in the market who do not have portfolios worth more than ₦150 million, they will be completely exempted from capital gains tax from January next year,” Oyedele explained.
He added that investors with portfolios exceeding ₦150 million who reinvest their proceeds in Nigerian stocks will also enjoy permanent exemptions on all gains made.
“For those who have portfolios of more than ₦150 million and are likely to sell more than ₦150 million in a year, there is another exemption reinvestment. When you invest the proceeds in any Nigerian stock, you get full exemption, a permanent one, on all the gains you have made,” he said.
Oyedele noted that all gains realised before December 31, 2025, will remain unaffected, adding that the reform aims to improve transparency without burdening small investors.
“What we are doing is that by 31st December 2025, there will be a reset such that nobody will have to pay any higher rate on the gains they have made up until that date,” he said.
He assured that the reform is designed to attract more participation in the Nigerian capital market while protecting low and middle-income investors.
