Young Nigerians and small-scale investors in the capital market are fully exempt from paying capital gains tax on stock market investments. This is according to Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. He said the belief that equity investments attract heavy taxation is largely incorrect and driven by misinformation.
Oyedele made the clarification during the Cowry Quarterly Economic Discourse themed “Nigeria in 2026: Will Politics Trump Economic Reform?”. He used the platform to explain key provisions of Nigeria’s capital gains tax (CGT) framework and ongoing fiscal reforms.
Under existing law, individuals automatically qualify for the CGT exemption if the total proceeds from asset disposal do not exceed N150 million. The gain must also not be more than N10 million within 12 months. According to Oyedele, the exemption applies without conditions. “No explanation is required. No additional approval is needed,” he said.
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He stressed that this provision already covers most retail investors and young Nigerians participating in the capital market. Pension fund administrators and real estate investment trusts also enjoy CGT exemptions, provided proceeds are reinvested. Oyedele said the structure is deliberate. It is designed to encourage long-term investing and sustained market activity.
He explained that high-net-worth individuals only become liable when they exit investments permanently. “If a multi-billionaire sells shares worth N2 billion and does not reinvest, then tax is payable,” Oyedele said. “But where the proceeds are reinvested, the law allows an exemption.” In such cases, investors only incur minimal transaction costs, which he said helps boost liquidity.
Oyedele described Nigeria’s CGT framework as one of the most competitive globally. He said it promotes reinvestment rather than discouraging participation. Addressing regulatory uncertainty, he noted that implementation regulations are being drafted to clarify grey areas. Proposed legislative amendments, where required, will be forwarded to President Bola Tinubu.
“We are not shifting goalposts,” Oyedele said. “We have a law and we are implementing it. Where regulations can solve issues, we will use them.”
He also downplayed concerns around taxing young Nigerians investing in digital and virtual assets. According to him, most operate at very small scales. “They invest $50, $80, $200. That is what adds up,” he said. He added that capital market investments often deliver better returns, even in dollar terms, while remaining tax-exempt.
Oyedele warned that misinformation has discouraged youth participation in equities. Many believe stock market gains attract taxes of up to 30 percent. “Nobody is telling them they are exempt,” he said.
Other speakers highlighted structural constraints. Chinyere Almona, director-general of the Lagos Chamber of Commerce and Industry, said businesses remain under pressure from high energy and infrastructure costs. Johnson Chukwu, group managing director of Cowry Asset Management, said reforms will only be sustained if households experience real improvements in living standards.