NGX Group highlights market resilience in dialogue on tax reforms

Nigerian Exchange Group (NGX Group) has reinforced its role as a trusted catalyst for market development by convening a high-level stakeholder dialogue on the Capital Gains Tax (CGT) provisions within the Tax Reform Act 2024, set to take effect in January 2026.

The virtual forum brought together issuers, investors, intermediaries, and regulators in a constructive exchange aimed at deepening understanding of the new tax regime while ensuring that market competitiveness remains a priority. The dialogue provided critical clarity on key provisions and created an avenue for stakeholders to share perspectives that will help shape implementation.

Speaking on the importance of resilience and investor confidence, Temi Popoola, GMD/CEO of NGX Group, noted: “Reforms of this scale raise important questions for issuers and investors alike. Our priority is to ensure the capital market remains attractive and forward-looking. By creating forums like this, we provide clarity, enable dialogue, and help the market adapt to fiscal changes in ways that support long-term growth.”

A key focus of the dialogue was the introduction of a 30 percent tax rate on gains from the disposal of shares—aligned with Nigeria’s corporate income tax. Participants emphasized the importance of ensuring Nigeria’s competitiveness compared with other African markets. Other issues raised included the determination of base cost, with recommendations for prospective calculation from the Act’s effective date, and the treatment of cross-listed securities, flagged as an area requiring careful guidance to avoid compliance complexity and double taxation.

Providing further clarity, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained that the reform is structured to protect retail investors, with a N150 million annual exemption threshold that places 99.9 percent of individual investors outside the scope of CGT. He added that while the standard rate is 30 percent, a reduced 25 percent CGT will apply when proceeds from share sales are reinvested in fixed income securities or other non-equity assets, whereas reinvestments into Nigerian companies — whether listed or unlisted — remain exempt. This, he emphasized, is designed to channel more capital into productive equity that drives growth, jobs, and long-term market sustainability.

Umaru Kwairanga, Chairman of NGX Group, highlighted the importance of NGX’s convening power: “At NGX Group, we believe that significant policy shifts must be clearly understood and calibrated to preserve market confidence. Our core function is to facilitate this essential engagement between policymakers and the market to ensure reforms translate into sustainable, long-term economic growth.”

Participants widely acknowledged the forum as timely and constructive, with NGX Group once again demonstrating leadership as a convener of solutions-driven dialogue. By facilitating this engagement, NGX Group has strengthened its position as an indispensable bridge between government and industry, ensuring that tax reforms are implemented in a manner that safeguards market vitality while supporting Nigeria’s broader economic goals.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with over 18 years journalism experience writing on banking, finance and capital markets. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos.
Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).