Big Relief for Investors: NGX Secures ₦150m Capital Gains Tax Exemption
Investors in Nigeria’s stock market just got a huge win! The Nigerian Exchange Group (NGX) has announced that under the new Capital Gains Tax (CGT) regime, stockholders will enjoy a ₦150 million annual exemption starting January 2026.
This exemption will shield 99.9% of retail investors from paying the 30% tax on profits made from selling shares.
Key Highlights:
1. Tax Exemption for Retail Investors ️
• Investors won’t pay CGT on share disposal gains up to ₦150m annually.
• Protects almost all small and medium investors in the market.
2. Reinvestment Incentives
• Standard CGT is 30%, but if investors reinvest proceeds in fixed income or non-equity assets, the tax drops to 25%.
• Reinvesting in Nigerian companies (listed or unlisted) will be fully exempt, encouraging more capital inflows into local businesses.
3. NGX’s Role
• NGX GMD/CEO Temi Popoola said the reforms raise important questions, and the dialogue ensures clarity for issuers and investors.
• NGX Chairman Umaru Kwairanga emphasized that policy shifts must be clearly communicated to sustain market confidence.
4. Broader Market Concerns
• Discussions also covered:
• How base costs will be determined.
• The start date for calculations under the new Act.
• Treatment of cross-listed securities to avoid double taxation.
Why It Matters:
• Strengthens Nigeria’s market competitiveness across Africa.
• Encourages long-term investments in productive sectors.
• Boosts confidence among local and foreign investors.
Market participants described the reforms as timely and investor-friendly, underscoring NGX’s leadership in protecting retail shareholders while ensuring Nigeria’s capital market remains attractive.
✨ In Summary: From 2026, most Nigerian retail investors won’t feel the burden of capital gains tax on share sales, thanks to a ₦150m exemption. With smart reinvestment options and NGX’s proactive engagement, this reform is set to keep Nigeria’s capital market vibrant, competitive, and growth-focused.
Investors in Nigeria’s stock market just got a huge win! The Nigerian Exchange Group (NGX) has announced that under the new Capital Gains Tax (CGT) regime, stockholders will enjoy a ₦150 million annual exemption starting January 2026.
This exemption will shield 99.9% of retail investors from paying the 30% tax on profits made from selling shares.
Key Highlights:
1. Tax Exemption for Retail Investors ️
• Investors won’t pay CGT on share disposal gains up to ₦150m annually.
• Protects almost all small and medium investors in the market.
2. Reinvestment Incentives
• Standard CGT is 30%, but if investors reinvest proceeds in fixed income or non-equity assets, the tax drops to 25%.
• Reinvesting in Nigerian companies (listed or unlisted) will be fully exempt, encouraging more capital inflows into local businesses.
3. NGX’s Role
• NGX GMD/CEO Temi Popoola said the reforms raise important questions, and the dialogue ensures clarity for issuers and investors.
• NGX Chairman Umaru Kwairanga emphasized that policy shifts must be clearly communicated to sustain market confidence.
4. Broader Market Concerns
• Discussions also covered:
• How base costs will be determined.
• The start date for calculations under the new Act.
• Treatment of cross-listed securities to avoid double taxation.
Why It Matters:
• Strengthens Nigeria’s market competitiveness across Africa.
• Encourages long-term investments in productive sectors.
• Boosts confidence among local and foreign investors.
Market participants described the reforms as timely and investor-friendly, underscoring NGX’s leadership in protecting retail shareholders while ensuring Nigeria’s capital market remains attractive.
✨ In Summary: From 2026, most Nigerian retail investors won’t feel the burden of capital gains tax on share sales, thanks to a ₦150m exemption. With smart reinvestment options and NGX’s proactive engagement, this reform is set to keep Nigeria’s capital market vibrant, competitive, and growth-focused.