Nigeria Capital Gains Tax Reform To Exempt Most Investors

The Nigerian government plans to reform Capital Gains Tax (CGT) to boost revenue, but more than 99 % of investors in the country’s capital market hold portfolios valued below ₦150 million, limiting the tax’s revenue potential. Taiwo Oyedele, chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, said the proposed changes have been misinterpreted, causing unnecessary panic among investors. Speaking on a television program, he clarified that the reforms are intended to improve transparency without burdening small investors.

Oyedele explained that investors on the Nigerian Exchange (NGX) with portfolios under ₦150 million will be fully exempt from CGT starting January 2026. This exemption will cover the vast majority of market participants, giving them relief from the tax. Investors whose portfolios exceed ₦150 million and who reinvest their proceeds in Nigerian stocks will also receive a permanent exemption on all gains realized.

All gains realized before 31 December 2025 will remain unaffected. The reforms aim to attract greater participation in the Nigerian capital market while protecting low‑ and middle‑income investors. Currently, CGT generates only about 10 % of its potential revenue; the new rules will raise the rate to 30 % for certain investors, but this higher rate will not apply to most market participants. Instead, exemptions will be granted to small investors and to those who reinvest their proceeds in the Nigerian stock market.

The government’s broader objective is to strengthen the tax system, increase revenue, and stimulate economic growth. By offering exemptions to small investors and to those who reinvest locally, the reforms seek to promote investment and development. The CGT changes will take effect in January 2026, and investors are advised to seek professional advice to understand how the new rules will impact their portfolios. The government has assured that the reforms will protect the interests of low‑ and middle‑income investors while generating much‑needed revenue for the country.