Nigerian Tax Reform Protects Low-Income Earners and Stimulates Capital Market Investment

The Nigerian tax reform, led by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy Tax Reform, focuses on shielding low-income earners by granting automatic exemption from capital gains tax to small-scale investors in the capital market until 2026. The law allows individuals with asset disposal proceeds not exceeding N150 million and gains below N10 million within 12 months to be exempt from tax.

Oyedele clarified that high net worth individuals become liable for capital gains tax only when permanently exiting investments without reinvesting. The reform aims to boost market activity and attract more investors, particularly young Nigerians investing in digital assets.