The Group Chief Executive Officer of the Nigerian Exchange Group, Temi Popoola, has called on President Bola Tinubu to review the newly introduced Capital Gains Tax, arguing that the steep 30% rate is discouraging foreign investors from entering the Nigerian market .
Popoola, who has been a key advocate for a balanced rollout of the tax reform, has previously stressed that reforms must be “carefully calibrated to protect liquidity, sustain participation and maintain competitiveness” . He has also commended the government’s stakeholder-driven approach to implementation, while consistently emphasising the need to avoid disrupting investment flows .
The CGT, which came into effect on January 1, 2026, raised the tax on gains from share disposals from a flat 10% to a progressive rate of up to 30%, aligning it with corporate income tax . While the reform includes an exemption for retail investors with proceeds under N150 million and encourages reinvestment, market analysts warn that the sharp increase risks triggering capital flight, as foreign investors contribute approximately 21% of total transactions on the NGX .
Private equity firms have also expressed concern, noting that the tax is calculated on nominal naira gains, which can result in a tax bill even when an investment has lost value in dollar terms due to currency depreciation . Popoola’s call for a review reflects a growing consensus among market stakeholders that a more investment-friendly tax regime is essential for Nigeria’s ambition to achieve a $1 trillion economy .