The federal government has promised to engage capital market stakeholders on the implementation of the controversial capital gains tax.
The Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, said the government was aware of the concerns raised by capital market investors on the policy.
Speaking at the closing gong ceremony to commemorate the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) Series 2 at the Nigerian Exchange (NGX) Limited on Tuesday, the Minister assured of balanced capital gains tax outcomes.
“We have noted the concerns around capital gains tax and will continue to engage with the capital market to ensure any decisions deliver optimal outcomes for both Nigerians and the market,” he said.
His reaction was in response to a call by the chief executive of the NGX Group Plc, Mr Temi Popoola, for balanced outcomes in the implementation of the tax.
“The capital market is not only a platform for attracting investment but also a tool for creating wealth for Nigerians.
“Policies such as the capital gains tax must be carefully designed to balance government revenue objectives with investor confidence and market growth.
“NGX Group remains committed to supporting the Renewed Hope Agenda by channelling private capital into initiatives that deliver sustainable, long-term impact,” Mr Popoola stated.
Business Post reports that the MREIF Series 2 was listed on the exchange yesterday at N100 per unit, allowing low-income earners to participate in savings and investment, leveraging local resources to grow our economy, especially in the housing sector.
The listing took place against the backdrop of cautious trading in the equities market, as investors recalibrate portfolios in response to geopolitical tensions arising from the US–Nigeria diplomatic standoff, the proposed CGT, year-end portfolio rebalancing, and expectations of window-dressing by institutional players.
While liquidity remains robust, analysts emphasize that aligning fiscal policy with investor expectations is critical to sustaining confidence and deepening long-term market participation.
The chief executive of NGX Limited, Mr Jude Chiemeka, said MREIF demonstrates how the capital market can deliver practical solutions to national challenges:
“By channelling private capital into housing, we are creating opportunities for long-term investment and wealth creation while addressing Nigeria’s housing deficit,” he stated.
On his part, the chief executive of MOFI, Mr Armstrong Ume Takang, said, “MREIF provides long-term, low-cost mortgage financing to make homeownership a reality for millions of Nigerians, stimulating local economies across the housing value chain.”