FG to review capital gains tax to 25% in 2026 - Oyedele

By Seun Ibiyemi

The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has said that the Federal Government will review the newly introduced 30 percent Capital Gains Tax (CGT) to at least 25 percent by 2026, as part of broader efforts to make Nigeria’s tax environment more competitive and investment-friendly.

Speaking at Stanbic IBTC’s Tax Matters Unplugged event on Thursday, Oyedele confirmed that the plan to lower CGT had already been factored into ongoing fiscal reviews.

“There’s a plan to reduce that to 25 percent, which means eventually it will be taxed at 25 per cent for the exit. And this rule applies to everyone. So there is no distinction between your foreign investor or your local investor,” he said.

Under the Nigeria Tax Act of 2025, Capital Gains Tax was raised from 10 percent to 30 percent, with implementation scheduled to begin on January 1, 2026. 

CGT is charged on profits realised from the sale of shares and other equity instruments, and is intended to ensure that investors who benefit from rising share prices contribute to public revenue.

Earlier this month, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also disclosed that the government was considering reviewing the controversial CGT rate ahead of its rollout. 

His comments followed cautious trading patterns in the equities market as investors adjusted portfolios amid geopolitical tensions tied to the ongoing US–Nigeria diplomatic standoff and concerns over the new tax regime.

Analysts say the upcoming reforms will reshape investment strategy in Nigeria. Mustapha of CSL Stockbrokers noted that investors will need to pay more attention to timing and asset allocation. 

“People will try to invest across asset classes so they can spread whatever taxes they have to pay or diversify across real estate and other classes,” he said.

Oyedele also revealed that the government is working to reduce the corporate income tax rate from 30 percent to 25 percent by 2026.

“We had written the CIT review for 25 percent into the law, but the governors refused it, so we found a way to add it to the law with a condition to get approval of the governors under the National Economic Council (NEC),” he explained.

He added that the committee has written to NEC and expects the approval process to be concluded before the end of December or by early 2026.

According to Oyedele, lowering corporate income tax will significantly boost the profitability of both listed and unlisted companies.

He also highlighted another major reform in the new tax act, the full allowance for businesses to claim input VAT credits on assets, services, and overheads. For decades, Nigerian businesses were unable to claim such credits, leading to escalating operational costs.

The combined impact of the reduced corporate tax rate and expanded VAT input credit is estimated at N5.4 trillion (about $3.5 billion), representing nearly 60–70 percent of current corporate tax revenue.

“So this is essentially a stimulant for businesses from next year that is expected to, on one hand, conserve their cash flow,” Oyedele said, adding that the reforms are designed to support economic growth and ease the burden on businesses.