FG Plans Further Consultations With Investors On Capital Gains Tax

The Federal Government has assured investors that the proposed Capital Gains Tax (CGT) policy will be implemented through continuous consultation with market stakeholders to achieve balanced outcomes that support fiscal objectives without undermining investor confidence.

Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, gave the assurance during the Nigerian Exchange (NGX) Closing Gong Ceremony held to commemorate the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) Series 2 in Lagos. The event underscored the pivotal role of the capital market in driving national development, especially in bridging Nigeria’s housing deficit.

Edun emphasised that the government has noted investor concerns about the CGT framework and remains committed to collaboration with the capital market to ensure that policy measures deliver optimal outcomes for both the economy and investors. “We have noted the concerns around Capital Gains Tax and will continue to engage with the market to ensure any decisions deliver optimal outcomes for both Nigerians and the market,” he said.

Under the proposed regime, the Capital Gains Tax will apply to profits realised from the disposal of shares and other equity instruments, both listed and unlisted. It also covers indirect share transfers, digital and private equity transactions, as well as mergers and acquisitions involving share disposals.

Gains below N10m within a 12-month period are exempt, while transactions totaling N150m or less in proceeds per year also qualify for relief. The government is considering additional reinvestment incentives to encourage long-term holdings.

Edun explained that MREIF, priced at N100 per unit, provides ordinary Nigerians with access to savings and investment opportunities while stimulating economic growth through real estate development. “This initiative allows Nigerians to participate in wealth creation and national development, leveraging local resources to strengthen the housing sector,” he noted.

Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, commended the government’s engagement with market operators on the tax policy and called for balanced implementation.

“The capital market is not only a platform for attracting investment but also a tool for creating wealth for Nigerians. Policies such as the Capital Gains Tax must be carefully designed to balance government revenue objectives with investor confidence and market growth,” Popoola stated.

Chairman of NGX, Ahonsi Unuigbe described the MREIF listing as a defining step toward inclusive prosperity, while Chief Executive Officer of NGX, Jude Chiemeka said the fund exemplifies how the capital market can be used to address national challenges.

“By channeling private capital into housing, we are creating opportunities for long-term investment and wealth creation while addressing Nigeria’s housing deficit,” Chiemeka said.

Managing Director/CEO of MOFI, Dr. Armstrong Ume Takang explained that MREIF is structured to provide long-term, low-cost mortgage financing that will make homeownership more accessible.

According to him, over 1,000 mortgages have already been disbursed under the initiative, which aims to stimulate local economies and expand middle-class wealth through the housing value chain.

The ceremony further demonstrated the growing synergy between the Federal Government, MOFI, and the private sector in mobilizing innovative financing mechanisms for infrastructure and housing.

However, the positive sentiment around the MREIF listing was overshadowed by a sharp downturn in the equities market. The NGX All-Share Index fell by 5.01 per cent, leading to a market capitalization loss of N4.6tn in a single day.

Analysts attributed the steep decline to investor apprehension over Nigeria’s recent designation as a “country of particular concern” by the United States government and lingering uncertainty surrounding the implementation of the proposed 30% CGT expected to take effect from January 1, 2026.

All sectoral indices closed in the red, with significant losses recorded in major stocks such as Dangote Cement (-10.00 per cent), MTN Nigeria (-10.00 per cent), BUA Cement (-10.00 per cent), GTCO (-7.69 per cent), and Transcorp (-10.00 per cent).

Market breadth remained broadly negative, with 56 losers compared to just four gainers.

Market turnover stood at N29.4bn ($20.45m), with offshore trades in Stanbic IBTC dominating block deals, while local investors were active in Nigerian Breweries, FBN Holdings, and a few others. Despite the losses, year-to-date performance of the NGX All-Share Index remains positive at 37.31 per cent.

Analysts expect subdued trading in the coming sessions as investors reassess portfolio positions in light of the evolving fiscal and geopolitical landscape.