Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed media reports suggesting that foreign investors expressed “frustration and unease” over Nigeria’s new capital gains tax (CGT) reform, describing it as “mischaracterisations” that mislead the public and distort facts.
His reaction was necessitated by a reported virtual call, which was organised by Standard Chartered to clarify the contentious new Capital Gains Tax (CGT) provisions in Nigeria’s tax reform law.
Feedback reportedly gathered from the session, which drew several foreign investors seeking clarity on how the changes would affect equity investments, later sparked reports of investor frustration, prompting Oyedele’s clarification.
Contrary to reports of disappointment, Oyedele said post-event data showed “80% of participants 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.
Addressing concerns that the capital gains tax could make Nigeria less competitive, Oyedele argued that such fears are misplaced.
“Competitiveness is not defined by the absence of CGT. The most advanced capital markets — the U.S., U.K., and South Africa, among others — apply CGT and remain attractive to investors.
“Competitiveness depends on overall returns and risk factors, not on the absence of CGT,” he explained.
He further clarified that “both local and foreign investors” benefit from exemptions tied to investment thresholds and reinvestment.
“Tax applies only where those thresholds are exceeded without reinvestment. Labelling this as a punitive tax on foreign investors is misleading,” he said.
The committee chairman also rejected ideological labels attributed to him, saying his call for taxing wealthier citizens more fairly is grounded in progressive taxation, not socialism.
“Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation, a principle embedded in virtually every advanced economy,” Oyedele noted.
Taking aim at what he called “intentional misreporting”, Oyedele urged the media to uphold professionalism and avoid anonymous, inflammatory quotes.
Since May 2023, he said, investors in Nigeria’s capital market have enjoyed “average returns of over 100% in U.S. dollar terms” from capital gains, dividends, and currency appreciation — a trend that, in his view, contradicts the narrative that the CGT policy is driving away investors.
Oyedele reiterated that the broader fiscal reform effort aims to “promote fairness and transparency” while encouraging investment in productive sectors.
“This is an opportunity to attract more retail investors away from gambling and virtual asset trading,” he said.