Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has clarified that over 99 per cent of investors in Nigeria’s capital market have portfolios valued below ₦150 million, and will therefore be exempted from Capital Gains Tax (CGT) under the upcoming tax reform.
Speaking on Channels Television’s Business Morning programme on Wednesday, Oyedele explained that the proposed CGT reform has been widely misunderstood, stressing that it does not impose new tax burdens on small investors.
“It’s oversimplified when people say we will increase the CGT rate from 10 per cent to 30 per cent, that is not correct,” he said. “It is a reform, and that reform means different things to different people.”
He noted that the exemptions take effect from January 2026, ensuring that the vast majority of investors; those whose portfolios are below ₦150 million will not pay any capital gains tax.
Oyedele added that investors with portfolios exceeding ₦150 million who reinvest their proceeds in Nigerian stocks will also enjoy permanent exemptions on all gains realized.
“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. When you reinvest the proceeds in any Nigerian stock, you get full and permanent exemption on all gains made,” he explained.
He further clarified that all gains realized before December 31, 2025, will remain unaffected, describing the reform as an effort to enhance transparency without overburdening investors.
“By December 31, 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 added.
Oyedele emphasized that the broader goal of the reform is to encourage participation in the Nigerian capital market while protecting low- and middle-income investors from unnecessary taxation.
