The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that small-scale investors in Nigeria’s capital market are exempt from capital gains tax under the 2026 tax reform law, which he said is designed to protect low-income earners and raise disposable income.
Oyedele spoke at the Cowry Quarterly Economic Discourse themed “Nigeria in 2026: Will Politics Trump Economic Reform?”, where he addressed widespread concerns and misconceptions surrounding the new tax framework.
According to him, the law grants an automatic capital gains tax exemption to individuals whose total proceeds from asset disposals do not exceed N150 million within a 12-month period, provided the actual gain is no more than N10 million. He stressed that qualifying investors do not need to file applications or provide explanations to enjoy the exemption.
“The law makes it clear that everyone is entitled to a capital gains tax exemption within those thresholds. There are no conditions attached,” Oyedele said.
He added that pension fund administrators and real estate investment trusts are also exempt, as long as proceeds from asset sales are reinvested. High-net-worth individuals, he explained, only incur capital gains tax when they permanently exit investments without reinvesting the proceeds.
“If a wealthy investor sells shares and chooses not to reinvest, then tax applies. But where funds are reinvested, the law allows exemptions, with only minimal transaction costs payable,” he noted.
Oyedele described Nigeria’s capital gains tax regime as globally competitive, saying it encourages reinvestment, improves market liquidity and supports long-term growth. He assured investors that implementing regulations are being prepared to address grey areas, while any issues requiring legislative amendments would be referred to President Bola Tinubu.
He also dismissed concerns around taxing young Nigerians investing in digital assets, noting that most operate on very small scales. “These are investments of $50, $100 or $200. Capital market investments, on the other hand, offer strong returns and are fully exempt at that level,” he said.
Oyedele warned that misinformation has discouraged youth participation in the stock market, with many wrongly believing returns are taxed at rates as high as 30 per cent.
On the broader reform agenda, he said the 2026 tax law aims to end the “taxation of poverty.” Nigerians earning the minimum wage are exempt from personal income tax, while taxable income thresholds have been significantly adjusted upward after deductions and reliefs.
He noted that previous data showed about 96 per cent of personal income tax revenue came from low-income earners, calling the situation unsustainable and unfair.
