The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said that the new tax law will offer investors in the Nigerian capital market a N150 million annual exemption in capital gains tax (CGT).
Oyedele reportedly clarified this during a high-level stakeholders dialogue with issuers, investors, intermediaries, and regulators, convened by the Nigerian Exchange (NGX) Group on the Tax Reform Act 2025.
Pinnacle Daily reports that President Bola Tinubu signed new tax laws into law on Thursday, June 26, which take effect from January 2026.
The tax laws are the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
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Explaining how the provision in the Nigeria Tax Act brings about N150 million exemption to investors, Oyedele said it is designed to protect 99.9 per cent of retail investors from the 30 per cent tax on gains from the disposal of shares.
He stressed that while the standard rate is 30 per cent, a reduced 25 per cent CGT will apply where proceeds from share sales are reinvested in fixed income or other non-equity assets.
The tax expert added that reinvestments into Nigerian companies, whether listed or unlisted, will remain fully exempt to encourage capital inflows into productive sectors of the economy.
The Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, commented that the dialogue was necessary to ensure clarity for issuers and investors ahead of the implementation. “Reforms of this scale raise important questions for the market. Our priority is to keep the capital market attractive and forward-looking while supporting long-term growth,” he noted.
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On his part, the Chairman of NGX Group, Umaru Kwairanga, reiterated the role of NGX as a trusted convener, ensuring that stakeholders are well-informed and market confidence is preserved.
He noted that engaging with regulators on such critical reforms helps sustain Nigeria’s market competitiveness compared with other African economies.
“At NGX Group, we believe that significant policy shifts must be clearly understood and calibrated to preserve market confidence. Our core function is to facilitate this essential engagement between policymakers and the market to ensure reforms translate into sustainable, long-term economic growth,” Kwairanga said.
Stakeholders also addressed concerns around the determination of base cost, prospective calculations from the Act’s commencement date, and the treatment of cross-listed securities to avoid double taxation.
They said the forum will help underscore NGX Group’s leadership in fostering investor confidence and ensuring reforms are implemented in a way that supports Nigeria’s broader economic goals.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
