FG, SEC, NGX Group Align on Capital Gains Tax Reform for Market-Friendly Rollout
The Federal Government (FG) has taken a significant step toward a more predictable and market-friendly implementation of Nigeria’s newly enacted Capital Gains Tax (CGT) provisions by inaugurating the National Tax Policy Implementation Committee (NTPIC). The move reflects a strategic effort to align tax reforms with market realities, ensuring that policies support long-term investment without disrupting liquidity.
The NTPIC will be chaired by tax and fiscal-policy expert Joseph Tegbe, who emphasized that the committee’s primary goal is to provide clear, transparent guidelines for CGT implementation. “Implementation of the new tax laws will be fair, transparent, and humane,” Tegbe said, adding that the government is committed to policies that do not undermine business activity or investor confidence.
This development follows extensive engagements with key capital-market institutions, including the Securities and Exchange Commission (SEC) and Nigerian Exchange Group (NGX Group). These discussions highlighted the potential impact of a rapid CGT rollout on market liquidity, investor sentiment, and Nigeria’s competitiveness in attracting domestic and foreign investment.
Temi Popoola, Group Managing Director of NGX Group, praised the government’s consultative approach. He noted that reforms of this magnitude must be carefully calibrated to protect market depth, sustain participation, and maintain global competitiveness. “Our engagements have focused on ensuring that implementation supports the capital market’s role in long-term investment and economic growth,” Popoola said.
The government’s intensified consultations came after Finance Minister Wale Edun visited NGX Group to review concerns from market operators. The visit reinforced the importance of a data-driven, carefully planned approach to CGT reform, balancing fiscal objectives with the need to safeguard Nigeria’s financial markets and encourage sustainable economic growth.
source: vanguard