Nigeria’s capital markets are at a sensitive point. The new Tax Laws increased the Capital Gains Tax from 10% to 30%  depending on the investor’s overall income or profit level, and the market seems to have reacted to such increase as the date of implementation, January 2026, draws closer; causing significant market volatility.

The government through the office of Minister of Finance, Wale Edun, has responded immediately to calm the market and reassure investors that the reforms are designed to be fair, transparent, and investor-friendly. The Finance Minister has pledged to review Capital Gains Tax (CGT) as part of ongoing tax reforms, aiming to balance government revenue with the need to encourage investment. Also, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who clarified that past gains will not be taxed under the new law.

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