Tax reforms to drive capital market growth – Oyedele
Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele
Nike Popoola
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said the Nigeria Tax Reform Act 2025 is designed to stimulate capital market growth and boost investor confidence.
Oyedele made this known in a report titled “Economic Overview and Highlights of Current Fiscal & Tax Reform,” where he outlined how the reforms aim to reduce costs, improve fairness, and deepen market participation.
According to him, all investors are effectively tax-exempt under the new framework, with about 99 per cent enjoying unconditional exemptions, while the remaining one per cent qualify under specific conditions.
He explained that the reforms introduce several measures to enhance capital market efficiency and attractiveness. These include capital gains tax (CGT) exemptions for retail investors, pension funds, reinvestments, real estate investment trusts (REITs), securities lending, corporate reorganisations, and mergers and acquisitions.
Other incentives include deductions for capital losses and incidental transaction costs, the elimination of withholding tax on bonus shares, and policies aimed at creating a level playing field between listed and unlisted entities, including adjustments to the free-zone tax regime.
Oyedele also highlighted stamp duty exemptions on all documents relating to the transfer of stocks and shares, as well as reduced business costs through expanded input VAT credits on assets and overheads.
Under the reforms, the Companies Income Tax rate is expected to decline from 30 per cent to 25 per cent, while multiple earmarked taxes such as TETFund, NITDA levy, and NASENI contributions will be harmonised. The government also plans to collapse more than 60 taxes and levies into fewer than 10, easing compliance burdens.
Additional measures include moderating excessive fees charged by government agencies through a proposed Tax Ombudsman, eliminating the current minimum tax on companies’ turnover or capital, and granting tax exemptions on state government bonds.
For individual and foreign investors, Oyedele said the reforms provide personal income tax exemptions or final withholding tax treatment on fixed-income securities, lower withholding tax rates to ease business cash-flow pressures, and final withholding tax status for dividends and interest earned by foreign investors. The reforms also remove the requirement for foreign investors to obtain a Tax Identification Number (TIN) to simplify compliance.
He said the combined measures are expected to deepen Nigeria’s capital market, improve liquidity, and support long-term economic growth.
