Nigeria’s government explains how its new 25% Capital Gains Tax on share disposals will apply, easing retail investors’ concerns.
The Federal Government has clarified details of the newly introduced Capital Gains Tax (CGT) on share disposals, following pushback from market stakeholders. According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, a 25% CGT applies when proceeds from share sales are reinvested in fixed-income securities or non-equity assets.
Retail investors remain largely exempt, with an annual threshold of ₦150 million shielding 99.9% of individuals. The tax targets institutional players and high-net-worth individuals, encouraging reinvestment in Nigerian companies to support jobs and growth.
Oyedele acknowledged inflation distorts cost determination but said indexation was too complex for now. He also noted forex depreciation has already given many investors significant gains.
While investors may feel short-term pain, officials argue the reform will drive stronger valuations and sustainable long-term growth for Nigeria’s economy.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
