KEY POINTS
- Capital gains tax reform is moving through a coordinated rollout.
- Market operators warned that rushed capital gains tax reform could hurt liquidity.
- Government officials said capital gains tax reform will involve broad consultation.
Nigeria has taken a step toward a more orderly rollout of its new capital gains tax rules. The Federal Government has inaugurated the National Tax Policy Implementation Committee after months of discussions with the Securities and Exchange Commission and the Nigerian Exchange Group. The move signals a shift toward clearer timelines, predictable execution and closer collaboration with the capital market, which policymakers say is needed to support liquidity and long-term investment.
Oversight for capital gains tax reform
The committee is chaired by tax and fiscal-policy expert Joseph Tegbe. It has been assigned to guide the capital gains tax implementation in a way that protects investors and avoids disruption. Its mandate covers transparent guidelines and broad stakeholder consultation. It will also develop an approach that supports confidence among domestic and international investors.
Tegbe said the government will steer clear of policies that risk stalling business activity or market participation. “Implementation of the new tax laws will be fair, transparent and humane. We will not roll out these policies in a way that cripples businesses or investors. Stakeholder engagement will be central to this process,” he said.
The direction followed sustained engagement with NGX Group and SEC, where operators warned against rapid rollout of capital gains tax. They cautioned that rushed changes might pressure liquidity, weaken sentiment, reduce competitiveness, and hinder efforts to attract deeper investment capital.
Market response to capital gains tax reform
Accoridng to Vanguard, Temi Popoola welcomed the coordinated approach, stressing that reforms must balance revenue goals with the need to preserve market depth. “We support the modernisation of Nigeria’s tax system, but reforms of this scale must be carefully calibrated to protect liquidity, sustain participation and maintain competitiveness,” he said. “Our engagements with government have focused on ensuring that implementation supports the capital market’s role in long-term investment and economic growth.”
Popoola added that competitiveness depends on execution. He said this is especially important for emerging markets that seek cross-border flows.
Government consultations intensified after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, visited the NGX Group. Market operators used the meeting to raise concerns about possible unintended effects of an abrupt implementation of the capital gains tax rules.
