Minister of Finance Pledges Review of Capital Gains Tax in the New tax Regime

The timely assurance came from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who said there would be continued consultation and a balanced approach in the implementation of the new Capital Gains Tax (CGT) provisions under the recently enacted tax reforms. He gave this assurance while speaking at the listing of one of the biggest real estate fund listings on the NGX, the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund Series 2, which listed on the NGX on November 11, 2025.

The Pledge: Listening to the Market

Speaking at the NGX Closing Gong Ceremony in Lagos, Edun addressed investor anxiety over the changes in CGT.

“We have heard what you have said on capital gains tax. We will consult in a way that gives Nigeria an optimum result. We will listen, analyse and decide what is best for Nigeria and for your markets.”

He further assured:

• “We have taken note of the concerns about Capital Gains Tax and will continue to engage with the capital market so that whatever decisions will be taken will give optimal outcome to both Nigerians and the market.”

This commitment responds to fears that the new CGT regime could deter investment and trigger further sell-offs in an already cautious market.

Background: The New Tax Reforms and Changes in CGT

The Nigeria Tax Act 2025, signed by President Bola Tinubu in June 2025 and effective as of January 1, 2026, puts together several tax laws and introduces major amendments to the CGT.

• For companies: CGT rate increases from 10% to 30%, aligning with Companies Income Tax.
• For individuals: Gains taxed at progressive personal income tax rates (up to 25%).
• Expanded scope: Includes the indirect offshore transfer of Nigerian assets, digital assets, and broader disposals.
  Exemptions raised: Sales below ₦150m with gains ≤ ₦10m are exempted; previously, it was ₦100m.

Reinvestment relief: Defer CGT by reinvesting proceeds in Nigerian companies.

These changes are geared toward broadening the tax base, closing loopholes, and increasing revenue, but also lead to portfolio recalibration and sell-offs on fears of reduced attractiveness for equities and foreign investment.

NGX Group GMD/CEO Temi Popoola called for caution:

Policies such as the capital gains tax must be carefully designed so that objectives of government revenue can be balanced with investor confidence and market growth.

The Event: Spotlight on MREIF Series 2

This pledge was made amidst celebrations for the ₦1 trillion MOFI Real Estate Investment Fund (MREIF) Series 2 – 1 billion units at ₦100 each, now trading on NGX.

• Mission: To channel private capital into affordable housing; providing low-cost mortgages-over 1,000 already disbursed-to help bridge the housing deficit in Nigeria.
• Impact: Enhancing financial inclusion, stimulating local economies, and enabling long-term savings among ordinary Nigerians.

Edun hailed the move, saying:

“At ₦100 per unit, the MREIF opens up an avenue through which ordinary Nigerians can participate in savings and investment, leveraging our local resources to grow our economy, especially in the housing sector.”

The CEO of MOFI, Armstrong Ume Takang, said: “MREIF provides long-term, low-cost mortgage financing to make homeownership a reality for millions of Nigerians.”

Why This Matters for Nigeria’s Economy

Despite jitters occasioned by CGT, the NGX All-Share Index is up ~37-50% YTD with market capitalization at ~$100 billion-a reflection of confidence in the reforms of the Tinubu administration. Edun’s assurance suggests that the government is willing to refine implementation for “optimum results” by balancing needs for revenues with the need for market growth.

Taiwo Oyedele, Chairman of the Tax Reform Committee, clarified thus: Past gains won’t be taxed retroactively

Edun’s engagement underlines a collaborative approach to fiscal policy; consultations are ongoing, and the stakeholders hope for adjustments that will keep investor sentiment intact while helping reach revenue goals.