The Federal Government has clarified that small-scale investors in the capital market are fully exempted from paying capital gains tax, while the 2026 tax reform law is aimed at protecting low-income earners and increasing disposable income.
‎The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele revealed this at the Cowry Quarterly Economic Discourse where he addressed concerns and misconceptions surrounding the new tax regime.
‎According to him, the law provided automatic capital gains tax exemptions for individuals whose total proceeds from asset disposal dif not exceed N150m, provided the gain was not more than N10m within 12 months.
‎He added that pension fund administrators and real estate investment trusts also enjoy exemptions, provided the proceeds were reinvested.
‎Oyedele also revealed that high-net-worth individuals only become liable to capital gains tax when they exit investments permanently without reinvesting.
‎He further described the nation’s current capital gains tax framework as one of the most competitive globally, noting that it encouraged reinvestment, liquidity, and growth in the capital market.
Edited by Favour Owonibi.