Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has dismissed claims that the recent sell-off in the Nigerian capital market, which resulted in the loss of N4.6trillion, was triggered by foreign investors reacting to U.S. President, Donald Trump’s comments about Nigeria.
He also in a statement, said disposals within 12 months, with total proceeds not exceeding N150 million and total gains not exceeding N10 million, would be exempted from Capital Gains Tax from January 1, 2026.
Speaking on Channels Television’s Business Morning yesterday, Oyedele explained that the fluctuations in the Nigerian Exchange, NGX, were part of normal market cycles, rather than politically-driven sell-offs.
“The capital market is always an up-and-down situation. Even after the sell-off yesterday (Tuesday), returns are still slim to about 40 per cent, and in dollar terms, about 50 per cent. ‘’This remains one of the best-performing markets in the world, and we want it to do even better. But there is no market where things continue to always go up.”
He noted that investors tended to take profits after extended periods of gains, leading to momentary declines, which should not be misinterpreted as panic reactions.
“The problem we created is that after a long run of gains and a few days of declines, people started attributing it to two things: the capital gains tax, which is not correct, and Trump’s issue with Nigeria over the genocide comment,” he said.
Oyedele added that if any sell-offs had, indeed, been influenced by Trump’s comments, “those people should be foreign investors, because Nigerian investors will not sell off because of Trump. Otherwise, where will they take the investments to?”
He emphasised that since foreign investors were not exiting the market, the recent dip could not be attributed to external political tensions.
“It’s just a normal market cycle where prices go up and down. Once we attribute them wrongly, it drives unnecessary sentiment,” he said. Sales not exceeding N150m within 12 months’ll be exempted from capital gains tax
In a separate statement issued in Abuja yesterday, Oyedele said disposal of sales with total proceeds not exceeding N150 million and total gains not in excess of N10 million, would be exempted from capital gains tax with effect from January 1, 2026.
He said the clarification became necessary due to what he described as “misinformation” on the subject in public discuss.
He said: “Recent discussions around the impact of the Capital Gains Tax, CGT, reform on the capital market have included some misinterpretations and misinformation.”
“While detailed implementation guidelines will be provided through official regulations, it is important to clarify the critical issues at this stage.”
According to him, the new CGT framework represents a major improvement over the existing law and that “the reform makes investment in the Nigerian capital market more attractive, reduces investment risk and ensures fair treatment of legitimate costs incurred by investors.”
According to him, exemptions will include “disposals within 12 months where total sales proceeds do not exceed ¦ 150 million and total gains do not exceed ¦ 10 million
“Reinvestment of proceeds into shares of Nigerian companies within 12 months qualifies for full exemption where the exemption threshold is exceeded.
“Capital gains from foreign share disposals that are repatriated into Nigeria through CBN-authorised channels.
“Institutional investors that enjoy corporate income tax exemption such as PFAs, REITs and NGOs are also exempted from CGT.
“Small companies with turnover not exceeding ¦ 100 million and total fixed assets not more than ¦ 250 million pay 0% CGT.
“Gains from investment in a labeled startup by venture capitalist, private equity fund, accelerators or incubators.”
The committee chairman added that key changes would include replacing the flat 10% CGT rate with progressive income tax rates, ranging from 0% to 30%, depending on the investor’s overall income or profit level.
“The top rate of 30%, which applies to large corporate investors, is expected to be reduced to 25% under the broader corporate tax reform.
“Investors may now deduct certain costs that were previously disallowed under the old CGT regime, ensuring that they are not taxed on a net loss position.”
He said for the purpose of CGT, effective from 1 January 2026, the cost base for existing investments would be reset to the higher of: the actual acquisition cost; and the closing market price as at December 31, 2025.
According to him, “this ensures fairness and prevents the application of the new rule to gains accrued before the new law takes effect.”
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