FG May Suspend Capital Gains Tax Plan Amid Investor Concerns

The Federal Government appears to have put the planned implementation of the Capital Gains Tax (CGT) on hold following widespread concerns from market stakeholders.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, said the government would adopt a careful and consultative approach in executing the new tax reforms, especially the proposed CGT on securities transactions earlier slated to take effect on January 1, 2026.

Speaking at the official listing of the N1 trillion Series 2 Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund on the Nigerian Exchange (NGX) in Lagos, Edun acknowledged feedback from stockbrokers and investors, saying:

> “We have heard what you have said about capital gains tax. We are looking at it. We will listen, analyse, and decide on what is best for Nigeria.”

The policy, aimed at taxing profits from stock and share sales, had sparked fears of reduced investment inflows and declining market performance. Analysts warn that the move could dampen investor confidence and discourage foreign direct investment, describing it as poorly timed amid efforts to stimulate economic growth.

Market experts also questioned the justification for a 25 per cent CGT on securities when other markets, like the UK, offer tax-free investment channels such as Individual Savings Accounts (ISAs).

Edun praised the NGX for supporting President Bola Tinubu’s reform agenda and noted that the stock market had grown nearly 50 per cent year-to-date, with market capitalisation reaching about $100 billion, a reflection of renewed investor trust in Nigeria’s economic direction.

He also commended Vetiva Securities Limited and Citi Investment Capital Limited for developing inclusive investment products that give ordinary Nigerians access to wealth creation opportunities.

According to Edun, the current improvements in the stock exchange index are “a function of confidence, stability in government revenues, economic growth, exchange rate, and reserves.”

The CGT policy will now undergo further review as part of the broader tax reform consultations set to continue into the new year.