We’ve heard you, minister tells stockbrokers
Apparently responding to the growing furore ahead of the proposed January 1, 2026, implementation date, the Federal Government may have quietly suspended the planned Capital Gains Tax (CGT) policy.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, consequently pledged that the Federal Government would adopt a cautious and consultative approach in implementing the recently enacted tax reform laws, particularly the contentious CGT on securities transactions.
The move, which had sparked fears of potential negative impacts on investment, is now under review as part of wider sector consultations within the government’s ongoing tax reform programme set to commence in the New Year.
Edun hinted at the possible reversal during a recent engagement. He stated:
“We have heard what you have said about capital gains tax. We are looking at it. We will listen. We will analyse. We will discuss and we will, at the end of it, decide, and hopefully we will decide what is best for Nigeria.”
Analysts note that the continuous decline in the Nigerian Exchange (NGX) in recent weeks may already reflect investor anxiety over the proposed tax, while market watchers describe the planned hike as ill-timed and counter-productive, especially for a government actively courting foreign direct investment (FDI).
They questioned the rationale behind imposing a 25 per cent tax on stock and share profits at a time investors could earn returns tax-free through options such as the United Kingdom’s Individual Savings Accounts (ISAs), which offer access to global equities.
Edun made the commitment yesterday in Lagos during the official listing of the N1 trillion Series 2 of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund on the NGX, marking one of the largest real estate fund listings in the Exchange’s history.
He praised the NGX and its leadership for aligning with President Bola Tinubu’s reform agenda and for expanding opportunities for retail investors. He noted that the equities market has gained about 50 per cent year-to-date, with total market capitalisation hovering around $100 billion, describing it as a reflection of investor confidence in ongoing macroeconomic and structural reforms.
“The improvements in the stock exchange index are a function of confidence — stability in government revenues, economic growth, exchange rate, and reserves,” Edun said.
He particularly commended NGX and the issuing houses – Vetiva Securities Limited and Citi Investment Capital Limited – for structuring investment products that allow ordinary Nigerians to participate in wealth creation.
