Concerns Rise Over Nigeria's 30% Capital Gains Tax Hike
The Nigerian Federal Government's plan to increase the Capital Gains Tax (CGT) to 30% has raised concerns about market competitiveness. Industry experts warn that this move could negatively impact investor confidence and make Nigeria less attractive for foreign investments.
Foreign portfolio investors have already started pulling out of the Nigerian equity market, with outflows surpassing inflows in January 2025. Critics argue that the proposed tax hike could deter investment in a country that has struggled to attract sustained foreign capital inflow due to currency instability.
In comparison, countries like Kenya offer a 0% CGT on listed securities, while Ghana maintains a lower rate of 15%. The government defends the tax reform as a step towards fairness and fiscal sustainability.
Plus234Feed summary based on reporting from The Will. Read the original report below.
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