Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed reports suggesting that foreign investors expressed frustration or unease over Nigeria’s new Capital Gains Tax (CGT) reform.
Oyedele described the claims as “mischaracterisations” that mislead the public and distort the true intent of the policy. His reaction followed reports from a virtual session organised by Standard Chartered, which brought together foreign investors seeking clarity on the new tax provisions. Some media outlets later portrayed the meeting as one marked by investor dissatisfaction — an account Oyedele firmly rejected.
In a statement shared on his X handle on Monday, titled “Setting the Record Straight on Capital Gains Tax,” Oyedele said his remarks during the session were taken out of context. “Public debate is vital for reform, but it must be anchored on facts, not misrepresentation,” he stated.
According to him, 281 participants from over ten countries joined the virtual engagement, and feedback showed strong approval. “Eighty percent of participants rated the session 9 or 10 out of 10, with an average score of 8.6. Many wished we had more time — hardly the response of frustrated investors,” he noted.
Addressing concerns that the new tax could make Nigeria less competitive, Oyedele said such fears were misplaced. “Competitiveness is not determined by the absence of CGT. The U.S., U.K., and South Africa all apply capital gains taxes and remain attractive investment destinations,” he explained.
He further clarified that both local and foreign investors benefit from exemptions tied to specific investment thresholds and reinvestments. “Tax applies only when those thresholds are exceeded without reinvestment. Portraying this as a punitive tax on foreign investors is misleading,” he added.
Rejecting ideological labels, Oyedele emphasized that his advocacy for taxing the wealthy more fairly aligns with global best practices. “Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation — a principle used by nearly all advanced economies,” he stated.
Calling out what he described as “intentional misreporting,” Oyedele urged journalists to uphold professionalism and avoid anonymous or inflammatory attributions. He also pointed out that investors in Nigeria’s capital market have enjoyed average returns of over 100% in U.S. dollar terms since May 2023 — a trend that contradicts claims that the CGT reform is discouraging investment.
Oyedele reiterated that the broader tax and fiscal reform agenda is designed to foster fairness, transparency, and sustainable growth. “This reform provides an opportunity to channel more investment into productive sectors and attract retail investors away from gambling and speculative virtual asset trading,” he said.
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