Nigeria’s stock market made a strong rebound on Wednesday, regaining approximately N2.6 trillion in market capitalisation with a 2.89 per cent gain, as clarifications on the new Capital Gains Tax (CGT) regime by key government officials helped to restore investor confidence.
Recall that the market suffered its sharpest single-day decline in 15 years on Tuesday, with a loss of N4.64 trillion in market value in just one day. The market capitalisation had tumbled by N4.641 trillion to settle at N89.885 trillion, while the All-Share Index plunged by 7,454.6 points, or 5.01 per cent, closing at 141,327.30 points.
However, investors’ confidence was reassured by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who provided critical clarity on the implementation of the new CGT framework through a series of statements and social media communications. Oyedele emphasised that the CGT reform, which takes effect from January 2026, is designed to strengthen Nigeria’s capital market by promoting fairness and protecting investors rather than discouraging investment.
He dispelled fears by assuring that gains earned on shares before January 1, 2026, will be grandfathered—meaning only gains realised after this date will be taxed under the new law. This transitional arrangement reassures investors that there will be no retroactive taxation on past profits.
He said the new progressive CGT rates range from zero per cent to 30 per cent depending on income levels, replacing the old flat 10 per cent charge. This structure includes exemptions for small investors and institutions, such as pension funds, Real Estate Investment Trusts (REITs), and NGOs, as well as incentives for reinvestment within 12 months to qualify for full tax exemption. Oyedele stressed that the reform is not aimed at revenue maximisation but at fostering a fair, investor-friendly environment to encourage long-term growth and reduce investment risks.
Recall that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has on Tuesday, acknowledged investor concerns about the CGT during the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund on Tuesday.
He assured stakeholders that the government is listening, analysing feedback, and is committed to making decisions that optimise benefits for Nigeria.
Edun’s promise of a consultative review process has been well received by the market, contributing to the rebound after recent heavy losses linked to fears over the tax increase.
The government’s move to triple the CGT rate for foreign equity investors from 10% is seen as a significant factor behind the recent volatility. However, the assurance that reforms will be balanced and mindful of market realities offers hope of stabilising the market and encouraging further participation.
Calls for Balanced Reforms from Akwa Ibom Governor and Senate Committee Chair
At the Moneyline Investment Forum held in Abuja on Tuesday, Akwa Ibom State Governor, Pastor Umo Eno, and Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market and Institutions, emphasised the need for careful and balanced implementation of fiscal and financial reforms.
Governor Eno, represented by his Commissioner for Information, emphasised the importance of aligning government policy with the interests of the people, highlighting that reforms must translate into tangible benefits for citizens and businesses.
He emphasised the importance of synergy between fiscal reform and financial education to ensure sustainable growth, citing Akwa Ibom State’s ARISE Agenda as a successful example of subnational economic development that contributes to national goals.
Senator Izunaso expressed concerns about recent market downturns caused by the anticipated CGT hike. He called for mechanisms that address investor concerns while safeguarding government revenue objectives without destabilising the capital market. Izunaso reaffirmed the Senate’s commitment to legislative reforms, including the Investment and Securities Act (ISA) 2025, which aims to deepen market participation, enhance inclusivity, and support Nigeria’s $1 trillion economic ambition by 2030
Continuing, Qyedele said the reform allows investors to deduct legitimate costs and capital losses, thereby protecting them from being taxed on net losses. It also exempts small investors and tax-exempt institutions such as pension funds, real estate investment trusts, and NGOs from paying CGT.
Oyedele explained that while the flat 10 per cent rate has been replaced with progressive rates ranging from zero to 30 per cent based on income levels, the top rate for large corporate investors is expected to decrease to 25 per cent under ongoing corporate tax reforms.
He added that investors who reinvest their proceeds within 12 months in Nigerian companies would qualify for full exemption, while small firms with turnover below N100 million would continue to enjoy zero per cent CGT.
“The policy is not revenue-driven,” Oyedele said, “but intended to create a fair, competitive, and investor-friendly tax system that encourages long-term growth and enhances confidence in Nigeria’s capital markets.”
He noted that implementation guidelines will be released soon to ensure clarity, fairness, and ease of compliance for all investors.
“In a nutshell: The new CGT framework makes the tax system fairer, more aligned with global practice, and friendlier to long-term investors. It reduces investment risks, protects small investors, encourages reinvestment, and simplifies compliance while ensuring that large and high-income investors who wish to exit the market contribute their fair share on realised gains that are not re-invested,” the chairman of the Presidential committee stated.
Meanwhile, the Akwa Ibom State Governor, Pastor Umo Eno, and Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, have called for a careful and balanced implementation of ongoing fiscal and financial reforms to sustain investor confidence, ensure inclusive growth, and strengthen the country’s economic foundation.
Both leaders made their remarks at the Moneyline Investment Forum held in Abuja on Tuesday, which focused on Nigeria’s evolving financial landscape, fiscal reforms, and the road to sustainable wealth creation.
The Commissioner of Information represented the Akwa Ibom State governor, Aniekan Umanah.
Similarly, Senator Izunaso expressed concern over the recent N4.64 trillion loss in market value recorded on the Nigerian Stock Exchange, following investors’ reaction to the proposed 30 per cent CGT under the Nigerian Tax Act 2025, which is expected to take effect in January 2026.
He explained that the planned increase from 10 to 30 per cent on share transactions valued at N150 million and above has triggered widespread disposals by major investors, resulting in a sharp decline in market capitalisation.
“In anticipation of this change, we have observed significant disposals by major investors, resulting in a notable decline in market capitalisation,” he said. “While taxation is essential for revenue generation, it is equally critical that fiscal measures do not inadvertently undermine investor confidence or discourage long-term capital formation.”
Izunaso urged the Minister of Finance to explore mechanisms that would address investor concerns while ensuring that government revenue objectives are met without destabilising the capital market. “A balanced approach will sustain momentum, protect market stability, and preserve the positive trajectory our capital markets have achieved under current reforms,” he stated.
Governor Eno, who delivered the keynote address, stressed that fiscal reforms must ensure a strong synergy between government policy and the people, arguing that economic progress will only be meaningful when reforms translate into real benefits for citizens and businesses.
“To achieve sustainable progress, there must be synergy between policy and people, between fiscal reform and financial education, and between the boardroom and the marketplace,” he said.
While acknowledging the significance of the ongoing reforms — including the new Investment and Securities Act 2025, Insurance Industry Reform Act 2025, new tax laws, and power sector deregulation — the governor cautioned that reforms must be carefully managed to avoid unintended shocks.
“We must be mindful of the risks that accompany reform — market volatility, inflationary pressures, and global uncertainties. Yet, within these risks lie opportunities to reinvent governance, promote inclusive growth, and leverage technology to deepen financial inclusion,” Eno stated.
He said Akwa Ibom’s economic strategy, anchored on the ARISE Agenda, exemplifies how subnational governments can drive productivity, innovation, and enterprise to complement the Federal Government’s push for a $1 trillion economy by 2030.
“Akwa Ibom stands today as proof that growth and development are possible when vision meets discipline and when governance serves the people rather than political expediency,” he said. Eno reaffirmed his commitment to transparency, accountability, and peace — describing them as “the three currencies that attract sustainable investment.”
Izunaso also reaffirmed the Senate’s legislative commitment to strengthening market institutions through the Investment and Securities Act (ISA) 2025, describing it as a transformative legal framework designed to deepen participation and promote inclusivity in the Nigerian capital market.
“The ISA 2025 is not just a legal instrument; it is a roadmap for building a capital market that is inclusive, resilient, and globally competitive,” Izunaso noted. “It supports the Federal Government’s ambition of achieving a $1 trillion economy by 2030 and transforms our markets into engines of broad-based economic growth.”
Both leaders emphasise collaboration among government, regulators, and the private sector as essential to converting reforms into tangible results. They agreed that Nigeria’s future prosperity depends on aligning fiscal discipline with investor confidence — transforming policies into prosperity and reforms into results.
The Nigerian equities market rebounded strongly yesterday, driven by bargain-hunting in blue-chip stocks, with the market capitalisation rising by N2.593 trillion, reflecting renewed buying momentum.
The All-Share Index (ASI) gained 4,076.53 points, representing a gain of 2.88 per cent to close at 145,403.83 points. Additionally, market capitalisation increased by N2.593 billion to close at N92.478 trillion.
The upturn was driven by price appreciation in large and medium-capitalised stocks, including Aradel Holdings, MTN Nigeria Communications (MTNN), NASCON Allied Industries, Nigerian Aviation Handling Company (NAHCO), and Guaranty Trust Holding Company (GTCO).
Also, this pattern suggested heightened institutional activity through large block transactions, signalling strategic positioning as investors capitalise on attractive entry points following the previous day’s sharp correction.
On market outlook, Afrinvest Limited said, “We expect the bourse to sustain its positive close to trading activities as investors hunt for fundamentally solid stocks amidst the policy pause on controversial capital gain tax.”
Market breadth was decisively positive, as 65 gainers overwhelmed 11 decliners. Access Bank, Ecobank Transnational Incorporated (ETI), GTCO, AXA Mansard Insurance, Nigerian Breweries, Oando, PZ Cussons Nigeria, Royal Exchange, Sovereign Trust Insurance, Wapic Insurance and Zenith Bank emerged as the highest price gainer of 10 per cent each to close at N22.00, N34.65, N85.80, N13.31, N66.00, N39.60, N38.50, N1.87, N2.86, N2.86, N59.40, respectively, per share.
NAHCO followed with a gain of 9.99 per cent to close at N96.90, while NASCON Allied Industries advanced by 9.98 per cent to close at N103.60 per share.
On the other hand, Vitafoam Nigeria, Transcorp Power, and Austin Laz & Company led others on the losers’ chart, with 10 per cent each, closing at N84.60, N307.80, and N2.61, respectively, per share.
Red Star Express followed with a decline of 9.80 per cent to close at N9.20, while Abbey Mortgage Bank shed 9.72 per cent to close at N6.50 per share.
The total volume traded increased by 22.94 per cent to 806.399 million units, valued at N50.778 billion, and exchanged in 24,509 deals. Transactions in the shares of GTCO led the activity with 104.780 million shares worth N8.990 billion. Zenith Bank followed with account of 86.806 million shares valued at N5.156 billion, while Stanbic IBTC Holdings traded 43.627 million shares valued at N4.580 billion.
Access Holdings traded 35.931 million shares worth N789.581 million, while FCMB Group traded 35.508 million shares worth N366.186 billion.
