The mood among international investors following a recent investor call with Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, was one of palpable disappointment and unease.

This, according to feedback gathered from attendees of a virtual call organized by Standard Chartered, was meant to clarify the contentious new Capital Gains Tax (CGT) provisions in Nigeria’s tax reform law.

The call attracted several foreign investors seeking clarity on how the provisions would affect equity investments in Nigeria.

What they are saying

According to multiple sources who listened in, the session was intended to explain Nigeria’s new stance on CGT and broader fiscal reforms.

However, it left many participants questioning both the economic philosophy and investor sensitivity guiding the reforms.

Several investors described Oyedele’s tone as “surprisingly ideological,” suggesting that the country’s top tax reformer appeared more “socialist” than market-oriented.

Oyedele, however, has in several engagements insisted that the new regime is not punitive but designed to stimulate investment.

Despite these clarifications, many foreign investors appeared unconvinced. Some fund managers said the message sent a troubling signal about Nigeria’s competitiveness, fairness, and policy predictability.

Sources also said Oyedele argued that even if Nigeria did not collect capital gains tax locally, FPIs would still pay equivalent taxes in their home jurisdictions — a point several participants dismissed as inaccurate.

One Africa-focused fund told Naijaonpoint, “mostly BS! Most institutional investors are zero-rated taxpayers in their home jurisdictions. It’s not the same thing.”

Adding to the frustration, participants could only submit questions via chat, which were filtered by Razia Khan, Chief Economist for Africa at Standard Chartered, who moderated the call.

Another concern was policy inconsistency. Oyedele reportedly noted that holders of Open Market Operations (OMO) instruments would be shielded from additional taxes and that new rules for bondholders would take effect in 2025.

Equity investors, however, were not given the same clarity.

While many acknowledged Oyedele’s broader vision for a fairer tax system, several foreign investors viewed his rhetoric as tone-deaf to market realities.

Not everyone shares the gloom. Some investors argue that the new CGT could attract more stable capital into Nigeria.

Viewed this way, CGT may not be a deterrent but a filter—discouraging speculative inflows while rewarding investors willing to stay the course.