ABUJA, Nigeria (VOICE OF NAIJA)-Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has refuted media reports claiming that foreign investors expressed frustration and unease over Nigeria’s new capital gains tax (CGT) reform.
He described the reports as “mischaracterisations” that misinform the public and distort the truth.
Oyedele’s response followed a virtual session reportedly hosted by Standard Chartered to explain the new Capital Gains Tax (CGT) provisions under Nigeria’s tax reform law.
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Feedback gathered from the meeting which included several foreign investors seeking clarity on the implications for equity investments was later portrayed in the media as investor dissatisfaction, prompting his clarification.
In a statement shared on his X handle on Monday, titled “Setting the Record Straight on Capital Gains Tax,” Oyedele said the reports had misrepresented both his comments and the objectives of the reform.
“Public debate is vital for reform. But debate must be anchored on facts, not misrepresentation,” he wrote.
He disclosed that 281 participants joined the investor call from over ten countries.
Contrary to claims of disappointment, Oyedele noted that post-event data showed “80% of participants rated the engagement 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 added.
Responding to concerns that the capital gains tax might make Nigeria less competitive, Oyedele said such fears were unfounded.
“Competitiveness is not defined by the absence of CGT. The most advanced capital markets the U.S., U.K., and South Africa, among others apply CGT and remain attractive to investors.
“Competitiveness depends on overall returns and risk factors, not on the absence of CGT,” he explained.
He also clarified that “both local and foreign investors” stand to benefit from exemptions based on investment thresholds and reinvestment conditions.
“Tax applies only where those thresholds are exceeded without reinvestment. Labelling this as a punitive tax on foreign investors is misleading,” he stated.
Rejecting ideological labels, Oyedele stressed that his advocacy for fairer taxation of wealthier individuals is rooted in 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.
Condemning what he termed “intentional misreporting,” Oyedele called on the media to maintain professionalism and avoid anonymous, sensational quotes.
Since May 2023, he added, investors in Nigeria’s capital market have recorded “average returns of over 100% in U.S. dollar terms” through capital gains, dividends, and currency appreciation a trend that, according to him, contradicts claims that the CGT policy is discouraging investment.
Oyedele reaffirmed that the broader fiscal reform initiative seeks to “promote fairness and transparency” while boosting investments in productive sectors.
“This is an opportunity to attract more retail investors away from gambling and virtual asset trading,” he said.