National Assembly to Discuss Capital Gains Tax Hike Amid N2 Trillion Market Loss

The National Assembly is set to engage the federal government over the controversial proposed increase in Capital Gains Tax (CGT) from 10% to 30% on share sales exceeding N150 million. Senate Committee on Capital Market and Institutions Chairman, Osita Izunaso, warned that the policy could trigger economic instability, citing a loss of about N2 trillion in market capitalization within a week. Investors have reportedly begun panic sell-offs in response to the proposed tax.

Speaking at the forum “Nigeria’s New Financial Landscape: Reforms, Risks and the Road to Wealth Creation” organized by Moneyline with Nancy Illoh Nnaji, Izunaso emphasized that while taxation is essential for revenue, fiscal measures should not undermine long-term investment or market confidence. He confirmed plans for a meeting with Finance Minister Wale Edun to discuss possible alternatives, including adjusting the tax take-off date.

Izunaso also highlighted the new Investment and Securities Act (ISA) 2025, describing it as a transformative law for Nigeria’s capital market. According to him, the ISA 2025 strengthens the Securities and Exchange Commission’s ability to monitor risks, enforce compliance, and ensure transparency, while also introducing stricter disclosure requirements, improved corporate governance, and better mechanisms to protect investors.

At the event, Governor of Akwa Ibom State, Umo Eno, represented by Commissioner of Information Aniekan Umanah, praised the federal government’s economic reforms, including the new tax laws and electricity deregulation. He encouraged states to adopt policies that promote business-friendly environments, transparency, and inclusive growth, while sharing Akwa Ibom’s success under the ARISE Agenda, which focuses on agriculture, infrastructure, security, and industrial development.

Governor Eno also detailed incentives for investors in Akwa Ibom, including tax holidays, duty-free machinery imports, streamlined land administration, and support from AKICORP. Highlighting tourism and agriculture as growth pillars, he noted that over 10,000 youths and women have been trained through Ibom-LED for entrepreneurship. Both Izunaso and Eno agreed that coordinated policy reform, investor protection, and subnational productivity are key to achieving Nigeria’s trillion-dollar economic ambition.

source: The Guardian