The Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Bismarck Rewane, has urged the federal government to either reduce the capital gains tax (CGT) to 10 per cent or defer the implementation date.
The renowned economist said this on Channels Television’s Business Morning programme on Tuesday, November 11, while sharing his thoughts on what is causing the sell-off being recorded in the Nigerian stock market.
He pointed to the new CGT rate as one of the factors causing the sell pressure in the market, resulting in the downward movement of the All-Share Index and market capitalisation.
“My suggestion is to reduce the capital gains tax back to 10 per cent or defer the implementation date because we don’t need anything that will frighten investors, both domestic and international,” Rewane said.
He stressed that apart from the fear of the Trump threat on Nigeria, among other fundamentals, the investors’ reaction towards the new CGT could not be ruled out.
He explained further that if an investor made a gain of N100 billion from selling shares on the Nigerian Exchange Limited (NGX), the investor could make a gain of about 200 per cent to 300 per cent.
READ ALSO: Ellah Lakes Opens ₦235bn Public Offer to Drive Growth
“If you make an N100 billion gain this month, you will pay N10 billion in capital gains tax. If you wait until January, you will pay N30 billion. So, you are giving N20 billion back to the government, which you will have invested,” Rewane maintained.
The renowned economist believes that investors are taking a position on the grounds that it is better to have the money in their pocket.
“It is better to cry with the money in their pocket than to cry with an empty pocket,” Rewane stressed.
He added that this negative trend in the stock market may continue if the government fails to heed suggestions.
READ ALSO: Nigeria’s Capital Gains Tax Overhaul: A Turning Point or Investor Deterrent?
Pinnacle Daily reports that the federal government introduced a 30 per cent CGT on the sale of shares in the new Nigerian Tax Act (2025), increasing it from the previous flat rate of 10 per cent.
The 30 per cent is to be applied to every sale of shares above 150 million or on a ₦10 million gain. The new tax law is expected to take effect from January 2026.
Some analysts have argued that the CGT is driving the sell-off in the stock market, but others think it is too premature to say that the negative sentiment in the stock market is a result of the CGT.
Be that as it may, Pinnacle Daily can report that the stock market has lost approximately ₦3.3 trillion since the beginning of this month, having opened at ₦97.83 trillion on Monday, November 3, and closed at ₦94.53 trillion on Monday, November 10.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
