Investors Flee as 30% Capital Gains Tax Hits Nigerian Market, Senate Seeks Review

Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market and Institutions, has called for a review of the contentious 30 per cent Capital Gains Tax (CGT) on share sales, citing a N2 trillion loss in market capitalisation as a result of the policy.

Speaking at the Moneyline with Nancy Investment Forum 2025 in Abuja on Wednesday, Izunaso urged the Federal Government to adopt a balanced taxation approach to maintain investor confidence and prevent capital flight.

“While taxation is necessary for revenue, it is crucial that fiscal measures do not undermine investor trust or discourage long-term capital formation,” he said. He noted that the Nigerian Tax Act 2025, which raises CGT on shares worth N150 million and above from 10 per cent to 30 per cent effective January 2026, has unsettled investors and triggered significant sell-offs.

Izunaso appealed to the Finance Minister to consider strategies that ensure both domestic and foreign investors remain engaged, emphasizing that a predictable tax environment is essential for sustaining ongoing capital market reforms.

In his keynote address titled “Redefining the Rules: The Investment and Securities Act 2025 and the Future of Nigeria’s Capital Market,” the senator praised President Bola Tinubu’s reforms for laying a foundation for sustainable market growth. He described the ISA 2025 as a forward-looking framework to enhance regulatory oversight, investor protection, and market transparency, aligning Nigeria’s capital market with global standards and supporting the $1 trillion economy goal by 2030.

The forum, themed “Nigeria’s New Financial Landscape: Reforms, Risks, and the Road to Wealth Creation,” brought together policymakers, regulators, and investors to discuss fiscal reforms and market stability.

Also speaking, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasized that ongoing tax reforms aim for fairness, growth, and efficiency rather than just revenue collection. He highlighted exemptions for businesses earning below N100 million and low-income earners, and explained that share disposals up to N150 million per year are exempt from CGT, with larger disposals avoiding tax if reinvested. Oyedele said misinformation had caused panic selling, but clarifications were already reversing the trend.

Representing Akwa Ibom Governor Umo Eno, Commissioner for Information Aniekan Umanah underscored the role of subnational governments in complementing federal reforms, highlighting Akwa Ibom’s industrialisation initiatives, including Ibom Air, Ibom Deep Seaport, and economic zones.

Dr. Tope Fasua, Special Adviser to the President on Economic Affairs, discussed cryptocurrency, noting its growing global recognition and the potential of Nigeria’s eNaira. Dr. Emomotimi Agama, SEC Director-General, warned against Ponzi schemes and stressed investor education, while Dr. Aisha Isa-Olatinwo of the CBN highlighted financial and economic inclusion efforts targeting women, youth, and MSMEs.

Nancy Illoh-Nnaji, Executive Producer of Moneyline with Nancy, described the forum as a platform to empower Nigerians with actionable knowledge, fostering sustainable wealth creation through sound policy and financial literacy.