Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has been urged to move swiftly to calm investor concerns over the new provision in the Nigerian Tax Act 2025, which raises Capital Gains Tax (CGT) on share sales worth ₦150 million and above from 10 per cent to 30 per cent, effective January 2026.
Chairman of the Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, made the appeal on Wednesday while delivering a paper titled “Redefining the Rules: The Investment and Securities Act 2025 and the Future of Nigeria’s Capital Market” at the Moneyline with Nancy Investment Forum 2025 in Abuja.
Izunaso said the abrupt hike in the tax rate has rattled the market, triggering panic sales that wiped off over ₦2 trillion in market value within a week.
“The increase in Capital Gains Tax on share sales above N150 million has created understandable concern among investors. In anticipation of this change, we have observed significant disposals by major investors, leading to a notable decline in market capitalization,” he said.
The Senator warned that while taxation remains a critical tool for government revenue, fiscal measures must be carefully designed to avoid eroding investor confidence or discouraging long-term capital formation. He called for a balance between revenue mobilization and the need to maintain a stable and attractive investment climate.
According to him: “The government must ensure that fiscal adjustments do not discourage the very investors who provide liquidity, jobs, and stability in the financial system. What we need is predictability, consultation, and gradual implementation to sustain growth in the capital market.”
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Izunaso commended President Bola Ahmed Tinubu for the renewed vibrancy in Nigeria’s capital market since 2023, attributing the progress to reforms that have stabilized the macroeconomic environment and improved policy coherence.
He said: “The Nigerian economy is at a pivotal juncture where structural reforms, fiscal discipline, and investment-friendly policies are redefining our financial and capital market architecture.”
The Senator described the Investment and Securities Act 2025 as a transformative law that strengthens investor protection, expands regulatory oversight, and deepens market participation from both local and foreign investors. He expressed optimism that the new legislation will help build a more resilient and transparent financial market capable of mobilizing long-term capital for development.
Delivering the keynote address at the same event, Akwa Ibom Governor, Pastor Umo Eno, said Nigeria stands at a defining moment in its economic history as it implements a series of reforms that will reshape the nation’s financial and productive sectors.
The Governor, who was represented by the Commissioner of Information, Aniekan Umanah, commended the Federal Government’s fiscal and structural reforms, including the Investment and Securities Act 2025, the Insurance Industry Reform Act 2025, the new Tax Laws, and the deregulation of the electricity market, describing them as bold decisions capable of transforming the economy.
According to Eno, liberalising the power sector will introduce competition, improve efficiency, and expand energy access nationwide. He said the reform will empower states and private players to play stronger roles in energy generation and distribution.
“In Akwa Ibom, we have already begun laying the groundwork to take ownership of our power sector—so we can generate, transmit, and distribute electricity within the state. Such deeper unbundling will allow subnational governments to serve their people better, attract private capital, and accelerate industrialization,” he said.
The Governor said Akwa Ibom State is positioning itself as a model for decentralised energy management by leveraging private investment to strengthen power supply and support local industries.
He added that the initiative aligns with President Bola Tinubu’s broader vision of a productive, self-sustaining economy anchored on innovation and enterprise.
