Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has dismissed reports suggesting that foreign investors expressed frustration over Nigeria’s capital gains tax (CGT) reform during a recent virtual meeting.
Gatekeepers News reports that in a post on X (formerly Twitter) on Monday, Oyedele described the online reports as misleading, saying they misrepresented both the policy and his engagement with stakeholders.
“Given their reach and credibility, it is important to set the record straight,” he wrote. “Public debate is vital for reform, but debate must be anchored on facts, not misrepresentation.”
The tax expert said the virtual engagement was well received, contrary to claims that it was marked by “frustration” and “unease.” According to him, about 80 percent of participants rated the session 9 or 10 out of 10, with an overall average of 8.6.
Clarifying one of his remarks, Oyedele said his comment about the bottom 97 percent of Nigerians being unable to pay tax referred to low-income earners and nano businesses, noting that exempting the poor while taxing the wealthy “fairly is not socialism — it is progressive taxation, a principle embedded in virtually every advanced economy.”
On investor concerns, he explained that many developed countries, including the United States, United Kingdom, and South Africa, apply CGT and still remain attractive investment destinations. “Competitiveness depends on overall returns and risk factors — not the absence of CGT,” he added.
He also clarified that Nigeria is not tripling CGT for foreign investors, stressing that both local and foreign investors benefit from exemptions based on thresholds and reinvestment. “Tax applies only where those thresholds are exceeded without reinvestment. Labelling this as a punitive tax on foreign investors is misleading,” he said.
Oyedele noted that investors in Nigeria’s capital market have earned over 100 percent average returns in dollar terms since May 2023, through capital gains, dividends, and currency appreciation.
He added that the ongoing tax reform aims to promote fairness, progressivity, and broaden participation in the capital market. “This is an opportunity to attract more investments, especially by retail investors, away from gambling and virtual asset trading,” he said.
Oyedele urged the media to be factual and responsible in its reporting, saying journalists should “interrogate and inform rather than sensationalise and mislead.”
