The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has refuted reports that foreign investors are frustrated with Nigeria’s new capital gains tax (CGT), describing them as misleading and inaccurate. Oyedele clarified that his recent engagement with investors was misrepresented by the media, stating that the feedback from participants contradicts the views reported.

Nigeria’s new capital gains tax, part of the four tax reform bills approved by President Bola Tinubu in June, aims to improve revenue mobilization and ensure that investors who profit from share sales pay commensurate tax on their net gains based on a certain threshold. The tax exempts share sales valued below N150 million and reinvested gains from being levied.

Oyedele’s clarification followed recent news that investors were dissatisfied with the federal government’s plan to implement a 10 percent tax on shares sold by investors as part of the new Tax Reform Acts coming into force in January. However, Oyedele stated that about 80 percent of participants who gave feedback after the event rated the engagement 9 or 10 out of 10, with an overall average of 8.6, contradicting claims of frustration and unease.

He also addressed concerns that the new rule will hurt Nigeria’s investment climate, noting that an absence of CGT does not make an economy competitive. Oyedele cited examples of advanced capital markets, such as the US, UK, and South Africa, which apply CGT and remain attractive to investors. He emphasized that both local and foreign investors benefit from exemptions based on thresholds and reinvestment, and that tax applies only where those thresholds are exceeded without reinvestment.

Oyedele warned against intentional misreporting by reputable media outlets, which he believes could distort public understanding of government policies. He emphasized the importance of professional journalism, diligence, and independent verification of facts in reporting. His focus, along with that of his team, remains on executing reforms that will make Nigeria’s tax system simpler, fairer, and more supportive of economic growth.

The Nigerian government’s fiscal reforms are part of efforts to boost non-oil revenue and deepen growth by ridding the economy of obsolete taxes that have impeded expansion, especially in the informal sector. The new capital gains tax is a key component of these reforms, aiming to improve revenue mobilization and ensure that investors contribute fairly to the economy. As the implementation of the new Tax Reform Acts approaches, it is essential to ensure accurate and balanced reporting to avoid misinformation and promote a clear understanding of the government’s policies.