The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has labeled recent media reports suggesting that foreign investors are upset by Nigeria’s new Capital Gains Tax (CGT) as inaccurate and misleading.
Taking to his X handle yesterday, Oyedele clarified that his recent discussion with financial stakeholders was misrepresented by certain news outlets.
The new CGT is part of the four tax reform bills signed into law by President Bola Tinubu in June, designed to enhance non-oil revenue and foster economic expansion.
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The reform aims to simplify the tax system and eliminate outdated levies that have historically hindered growth, particularly in the informal sector.
The new tax structure mandates that investors who profit from selling shares must pay a 10% tax on their net gains above a specified threshold.
However, the law provides key exemptions: sales valued below ₦150 million and gains that are reinvested are exempt from the levy.
Oyedele’s clarification follows reports that investors were dissatisfied with the impending CGT implementation, with some suggesting the tax would deter foreign portfolio investments.
These reports also claimed that Oyedele’s comments during a recent virtual meeting reflected a “socialist” viewpoint.
The Tax Chief rejected these interpretations, stating that the feedback from the meeting participants contradicts the media narrative.
“Public debate is vital for reform. But debate must be anchored on facts, not misrepresentation,” he wrote, noting that 281 participants from over 10 countries attended the call.
Oyedele stated that approximately 80% of respondents rated the engagement 9 or 10 out of 10, with an overall average score of 8.6.
“From the comments, many wished we had more time—certainly not the expected reaction of frustrated investors,” he added.
He also addressed the misinterpretation of his remarks about focusing tax collection on the top three percent of earners.
“Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation, a principle embedded in virtually every advanced economy,” Oyedele asserted.
Oyedele dismissed insinuations that the new CGT would damage Nigeria’s investment climate, pointing out that the absence of such a tax doesn’t automatically make an economy competitive.
He argued that major global financial markets, including the U.S., U.K., and South Africa, successfully apply CGT while remaining attractive to investors. In contrast, many nations without CGT often lack robust capital markets.
Oyedele emphasised that both local and foreign investors benefit from the tax exemptions tied to investment thresholds and reinvestment.
He stressed that labeling the measure as “punitive” toward foreign investors is misleading.
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He cautioned reputable media outlets against what he termed “intentional misreporting,” warning that it distorts public understanding of government policy.
Oyedele reiterated that his committee remains focused on implementing reforms to make Nigeria’s tax system simpler, fairer, and more growth-supportive.
