NGX Group deepens market confidence with dialogue on capital gains tax reforms

The Nigerian Exchange Group (NGX Group) has reinforced its position as a key driver of market stability by hosting a high-level stakeholder engagement on the Capital Gains Tax (CGT) provisions of the Tax Reform Act 2024, scheduled to take effect in January 2026.

The virtual roundtable brought together policymakers, issuers, investors, regulators, and market intermediaries in a constructive discussion aimed at clarifying the implications of the new tax regime while safeguarding Nigeria’s competitiveness as an investment hub. The dialogue provided insights on core provisions and created a platform for stakeholders to share perspectives that could shape practical implementation.

Central to the deliberations was the 30% tax rate on share disposal gains, aligned with corporate income tax. Participants compared the rate with global standards but stressed the importance of dialogue to ensure the reform does not undermine investment flows. Other issues raised included the determination of base cost, where prospective calculation from the Act’s commencement was recommended, and the treatment of cross-listed securities, which stakeholders warned could pose compliance risks and potential double taxation if not carefully addressed.

NGX Group Chairman, Alhaji Umaru Kwairanga, underscored the Exchange’s role in bridging policy and market realities. “At NGX Group, we believe significant reforms must be clearly understood and calibrated to maintain market confidence. Our core duty is to enable this dialogue between policymakers and market operators so that reforms support sustainable economic growth,” he said.

Offering the government’s perspective, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said: “The Tax Reform Act is designed to create a fair, transparent, and sustainable tax system, not to discourage investments. Engagements such as this ensure stakeholders’ feedback informs how reforms are applied in practice.”

Temi Popoola, GMD/CEO of NGX Group, highlighted the importance of resilience amid fiscal changes. “Reforms of this scale inevitably raise questions for issuers and investors. Our role is to provide clarity, foster dialogue, and support the market to adapt in ways that encourage long-term growth,” he stated.

Participants welcomed the forum as both timely and solutions-driven, commending NGX Group’s leadership in convening the dialogue. By facilitating engagement, NGX Group reaffirmed its role as a critical link between government and industry, ensuring that tax reforms are implemented in ways that safeguard market confidence while advancing Nigeria’s economic aspirations.