The (ASHON) has called on the federal government to review the recently introduced Capital Gains Tax on securities, that comes into effect in January due to fears it will derail recoveries in the capital market.
This call was made by ASHON’s newly inaugurated Chairman, Mr Seinde AdenagbeAssociation of Securities Dealing Houses of Nigeria, on Sunday. He was officially decorated as the group’s 6th chairman in Lagos on Friday.
Under the new rules, the previous fixed 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
Speaking on the development, Mr Adenagbe warned that the sudden policy change threatens investor confidence and undermines market stability, evidenced by a N6 trillion loss in Nigerian Exchange’s market capitalisation.
“Whatever is true, honest, just, pure, lovely, and of good report should define our conduct. Our word must remain our bond,” Mr Adenagbe said in a statement on Sunday, urging President Bola Tinubu to urgently review the CGT policy.
He noted that market capitalisation had climbed to N95 trillion by October before the sharp decline.
Mr Adenagbe also highlighted that while the Securities and Exchange Commission plans to recapitalise operators, the exercise should strengthen market efficiency rather than eliminate firms through unrealistic capital thresholds.
“Capital raising should not lead to the demise of promoters but guarantee the survival of firms, employees, and the broader ecosystem,” he added.
He outlined a 10-point agenda aimed at reinforcing professionalism, ethics, and governance across the Nigerian capital market, including improved investor education, technology adoption, and unified advocacy among market operators.
Other stakeholders have also voiced concerns including the chief executive of NGX, Mr Jude Chiemeka, who recommended that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”