Nigeria TV Info — Capital Market Operators Urge Reconsideration of Proposed 30% Capital Gains Tax

Lagos, Nigeria — Operators in Nigeria’s capital market have called on the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms (FPTR), Mr. Taiwo Oyedele, to review plans to introduce a 30 per cent tax on capital gains from the disposal of shares.

In an open letter dated October 2, 2025, the operators warned that the proposed tax, expected to take effect from January 2026, would exert significant pressure on the Nigerian Exchange Limited (NGX) for the remainder of the year. They highlighted concerns that domestic and foreign institutional investors might rush to realise gains under the current tax regime before the new measure comes into effect, potentially destabilising the market.

The letter, signed by Chief Executive of Emerging and Frontier Capital (EFC), Mr. Kato Mukuru, argued that the proposed Capital Gains Tax (CGT) rate contradicts the seventh guiding principle of the FPTR, which seeks to ensure sustainable growth and investor confidence in Nigeria’s financial markets.

Despite the looming tax proposal, the NGX has recorded significant gains in 2025. Market capitalisation opened the year at N62.763 trillion and surged by 44.3 per cent — an increase of N27.82 trillion — to close September 30, 2025, at N90.581 trillion. This growth was attributed largely to federal government foreign exchange reforms and other investor-friendly policies.

In September alone, the market capitalisation increased by 2.04 per cent or N1.81 trillion, rising from N88.769 trillion in August to N90.581 trillion. This demonstrates strong performance and renewed investor confidence in Nigeria’s capital market despite uncertainties.

The open letter to the FPTR chairman reflects broader industry concerns over the potential chilling effect of a high CGT rate on investment flows, especially at a time when Nigeria’s capital market is recording substantial growth.