ABUJA, Nigeria (VOICE OF NAIJA)- The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has explained that small-scale investors in the capital market are completely exempted from capital gains tax.
He added that the 2026 tax reform law is designed to shield low-income earners and boost disposable income.
Oyedele made this known at the Cowry Quarterly Economic Discourse themed “Nigeria in 2026: Will Politics Trump Economic Reform?”, where he addressed public concerns and misconceptions about the new tax framework.
He stated that the law grants automatic capital gains tax exemptions to individuals whose total proceeds from asset disposals do not exceed N150m, provided the gains are not more than N10m within a 12-month period.
“The law says everyone is entitled to an exemption on capital gains tax. If the proceeds are not more than N150m and the gain is no more than N10m in 12 months, the exemption is automatic, with no explanation and no conditions attached,” Oyedele said.
He further noted that pension fund administrators and real estate investment trusts are also exempted, as long as the proceeds are reinvested.
According to him, high-net-worth individuals only become liable to capital gains tax when they permanently exit investments without reinvesting.
READ ALSO: FIRS, Judiciary Deepen Partnership On Emerging Tax Laws
“If a multi-billionaire sells shares worth N2bn and decides not to reinvest, then tax is payable. But if the proceeds are reinvested, the law allows that exemption. What you pay instead is a minimal transaction cost, which also stimulates market activity,” he explained.
Oyedele described Nigeria’s capital gains tax regime as one of the most competitive globally, stressing that it promotes reinvestment, liquidity and capital market growth.
He assured investors that the committee is working on implementation regulations to address grey areas, while any amendments requiring legislative approval would be submitted to President Bola Tinubu.
He also observed that most young Nigerians investing in digital and virtual assets do so on a very small scale, making fears of heavy taxation largely unfounded.
“These young people are not investing millions of dollars. They invest $50, $80, and $200. That is what adds up. Meanwhile, capital market investments offer better returns, even in dollar terms, and they are fully exempted,” he said.
Oyedele warned that misinformation has reduced youth participation in the stock market, with many believing that investment returns are taxed at rates as high as 30 per cent.
“If you ask young people on the street, they will tell you the stock market is taxed at 30 per cent because nobody is telling them they are exempted,” he said.
READ ALSO: Tinubu Insists New Tax Laws Will Take Effect As Scheduled
He outlined the wider goals of the 2026 tax reform law, noting that it aims to end the taxation of poverty, protect low-income earners and ensure that Nigerians with higher earning capacity contribute a fairer share of taxes.
Under the new structure, workers earning the national minimum wage are exempt from personal income tax, while the taxable income threshold has been significantly increased after allowable deductions and reliefs.
“The N800,000 people talk about is taxable income, not gross income. By the time you remove deductions and allowances, that translates to about N1m to N1.2m gross income. And even at that, anyone earning the minimum wage pays no tax at all,” Oyedele said.
He recalled that data previously presented to the Federal Government showed that about 96 per cent of personal income tax revenue in Nigeria came from low-income earners, a situation he described as unfair and economically harmful.
“We were taxing poverty. That is not how a functional economy works,” he said.