Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee has said the new Capital Gains Tax (CGT) will strengthen the capital market, making it more competitive and attractive to investors. Prof. Taiwo Oyedele, chairman of the committee, explained that CGT is levied on profits from asset sales rather than total proceeds and is relatively low compared to corporate and value-added taxes.
The reform includes CGT exemptions for retail investors, reinvestments, pension funds, REITs, securities lending, and reorganisations. Other measures include input VAT credits, stamp duty exemptions on stock transfers, and harmonisation of taxes, aiming to reduce business costs and enhance cash flow.
Financial stakeholders, including Dr. Umaru Kwairanga of the Nigerian Exchange Group, stressed that perception management is key to market stability, while economists highlighted areas for further stakeholder engagement, such as the taxation of private bonds.
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