By Patricia Jang
The Federal Government appears to have suspended the planned implementation of the Capital Gains Tax (CGT) on securities transactions, initially scheduled to take effect on January 1, 2026.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known while assuring that the government would adopt a cautious and inclusive approach to enforcing recently enacted tax reforms.
The proposed tax had drawn widespread criticism from market participants, who warned that it could dampen investor confidence and discourage participation in the capital market.
Speaking at a recent engagement, Edun acknowledged the public’s concerns, hinting that the policy may be reconsidered following extensive consultations.
“We have heard what you have said about capital gains tax. We are looking at it. We will listen. We will analyse. We will discuss, and at the end of it, decide — and hopefully decide what is best for Nigeria,” he stated.
Financial analysts say the recent downward trend in the Nigerian Exchange (NGX) may already reflect investor unease over the proposed policy. They argue that imposing a 25 per cent tax on stock and share profits could be counter-productive at a time when the government is striving to attract foreign direct investment.
Critics also questioned the timing of the policy, pointing out that other markets, such as the United Kingdom, offer tax-free investment options like Individual Savings Accounts (ISAs), which give investors access to global equities.
Edun spoke on the matter during the official listing of the N1 trillion Series 2 of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund on the NGX in Lagos. The listing, one of the largest in the Exchange’s history, underscores efforts to deepen the real estate investment market.
Commending the NGX and its leadership, the minister praised their alignment with President Bola Tinubu’s economic reform agenda and their role in creating broader investment opportunities for Nigerians.
He noted that the equities market had gained nearly 50 per cent year-to-date, with total market capitalisation around $100 billion, describing it as evidence of growing investor confidence.
“The improvements in the stock exchange index are a function of confidence — stability in government revenues, economic growth, exchange rate, and reserves,” Edun said.
He also lauded the NGX and issuing houses — Vetiva Securities Limited and Citi Investment Capital Limited — for designing investment products that enable ordinary Nigerians to participate in wealth creation through the capital market.
