Capital Gains Tax: Oyedele Says “Keep Calm,” PE Firms Feel the Heat
The Big Picture
Nigeria’s brand-new Tax Act of 2025 more than triples Capital Gains Tax (CGT) from 10 percent to 30 percent starting January 1, 2026, and the reaction has been … spirited. While the government touts a fairer, more progressive code, investors are bracing for impact.
The Details
Addressing the Capital Market Academics of Nigeria this week, committee chair Taiwo Oyedele urged investors to stay “open-minded” and warned that “the market is vulnerable to false information in the short term,” Voice of Nigeria reports.
He argued the higher CGT is offset by a cut in Companies Income Tax to 25 percent and new exemptions for retail investors, pension funds and reinvested gains, moves he insists will “promote fiscal equity.”
Private-equity managers see things differently. In a survey cited by BusinessDay, firms warned the 30 percent rate could throttle badly needed dollar inflows. One fund executive called it “a choice between a quick naira today or long-term capital tomorrow.”
Adding to the chatter, The Nation noted that CGT collected over the past decade was a mere ₦276 billion versus ₦48 trillion combined for CIT and VAT, evidence, Oyedele says, that “there’s room to grow” (The Nation).
Why It Matters
The reaction was swift: traders fear reduced deal flow, while reform advocates counter that lower corporate taxes and input-VAT credits will keep Nigeria competitive. TheCable adds that the broader shake-up also simplifies filing and strengthens taxpayer rights under a new Ombudsman (The Cable). Whether the carrot outweighs the 30-percent stick is the billion-dollar question.
Around the Tax World
• Crypto joins the tax net: Digital currencies will be taxed under the same framework that exempts most stock-market gains, Oyedele told an online forum (Ripples Nigeria).
• Airlines feel squeezed: Domestic carriers say layered fees and taxes add roughly $185 to a Lagos,Accra ticket, eroding profits and pricing out travelers (The Sun).
• Banks on notice: Lenders are alerting depositors after the FIRS reaffirmed the 10 percent tax on fixed-income interest, effective immediately (The Sun).
• Telecoms talk compliance: ALTON will host its first Compliance Management Forum next month with Oyedele keynoting on the 2025 fiscal framework (TechEconomy).
Tax Stat of the Day
₦276 billion , total CGT collected between 2014 and 2024, less than 1 percent of what companies paid in CIT and VAT combined (The Nation).
Looking Ahead
The FIRS says it will unveil detailed implementation guidelines for the new Tax Reform Acts at stakeholder sessions in early December, so keep those red pens handy (ThisDay).