Investor Panic as Nigeria Introduces Capital Gains Tax on Equities

Concerns over the impending 25% Capital Gains Tax (CGT) on equities in Nigeria have triggered panic among investors and fears of capital flight. The announcement of the tax set to take effect in January 2026 has led to uncertainty and potential disruptions in the capital market.

While retail investors are somewhat shielded by exemptions, market operators warn of negative impacts on investor sentiment, particularly among foreign portfolio investors. Experts emphasize the need for clearer rules and a more moderate tax adjustment to prevent adverse effects on capital inflow and equity costs during a critical period of economic recovery in Nigeria.