Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has debunked reports claiming that foreign investors expressed “frustration and unease” over Nigeria’s new Capital Gains Tax (CGT) reform.
In a statement on Monday titled “Setting the Record Straight on Capital Gains Tax,” Oyedele described the reports as “mischaracterisations” that distort the facts and mislead the public.
The clarification followed reports that foreign investors raised concerns during a virtual engagement organised by Standard Chartered Bank to discuss Nigeria’s revised CGT provisions.
Oyedele explained that the call, which had 281 participants from over ten countries, was largely positive. “Post-event data showed 80 percent of participants rated the session 9 or 10 out of 10, with an overall average score of 8.6. From the comments, many wished we had more time – certainly not the expected reaction of frustrated investors,” he said.
He dismissed suggestions that the reform could make Nigeria less competitive, arguing that advanced economies like the United States, United Kingdom, and South Africa all apply CGT while remaining attractive investment destinations.
“Competitiveness depends on overall returns and risk factors, not on the absence of CGT,” he said.
Oyedele also clarified that both local and foreign investors enjoy exemptions tied to reinvestment thresholds, stressing that tax applies only when capital gains are not reinvested. “Labelling this as a punitive tax on foreign investors is misleading,” he added.
Responding to ideological criticisms, Oyedele said his advocacy for fairer taxation aligns with global principles of progressive taxation, not socialism. “Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation — a principle embedded in virtually every advanced economy,” he said.
He accused some media outlets of “intentional misreporting” and urged journalists to uphold professionalism and avoid anonymous or inflammatory commentary.
According to Oyedele, investors in Nigeria’s capital market have recorded “average returns of over 100 percent in U.S. dollar terms” since May 2023 — a figure he said contradicts claims that CGT is deterring investment.
He reiterated that the fiscal reform agenda aims to promote fairness, transparency, and economic growth, while channeling investor interest into productive sectors.
