The Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, has urged the Federal Government to review the newly introduced 30% Capital Gains Tax (CGT) on share sales. Speaking at the Moneyline with Nancy Investment Forum 2025 in Abuja, Izunaso warned that the policy has already triggered a N2 trillion loss in market capitalisation, highlighting the risk of eroding investor confidence and driving capital flight.
Under the Nigerian Tax Act 2025, the CGT rate on share sales above N150 million will rise from 10% to 30%, effective January 2026. Senator Izunaso described the move as “unsettling” for investors, noting that large disposals by major market players have accelerated panic selling. He appealed to the Minister of Finance to explore mechanisms that maintain market stability while fostering an investor-friendly environment.
The senator also praised the Investment and Securities Act (ISA) 2025, describing it as a forward-looking framework designed to strengthen regulatory oversight, enhance investor protection, and align Nigeria’s capital markets with global standards. He stressed that effective implementation of these reforms could support the Federal Government’s ambition of building a $1 trillion economy by 2030.
Other speakers at the forum, including Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasised that ongoing tax reforms were intended to ensure fairness, growth, and efficiency rather than just revenue collection. Oyedele clarified that smaller share disposals and low-income earners would be protected, while reinvestment of proceeds could exempt larger transactions from CGT, countering misinformation that had sparked market panic.
State and federal representatives, including the Akwa Ibom Governor’s office and top financial regulators, highlighted complementary reforms across energy, technology, and financial inclusion. They urged Nigerians to embrace responsible investment practices, citing innovations like the eNaira and financial literacy campaigns. The forum concluded with a call for collaboration among policymakers, investors, and regulators to sustain a resilient, transparent, and inclusive financial ecosystem.
source: punch