By David Akinmola
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the recently amended Capital Gains Tax (CGT) law will not apply retroactively, assuring investors that gains realised before the law came into effect will remain untaxed.
Oyedele made the clarification while addressing concerns from investors and business operators who feared that historical gains on assets such as equities, real estate, and other investments could be subject to retrospective taxation under the new fiscal regime.
He explained that the reformed CGT framework, part of the government’s broader tax modernisation effort, is designed to improve compliance, simplify the tax system, and enhance fairness—without imposing undue burdens on investors.
“The law is not retroactive,” Oyedele stated. “Only capital gains realised after the commencement date of the new provisions will be subject to tax. This ensures certainty and fairness in the application of the law.”
He added that the reform seeks to align Nigeria’s tax system with global best practices, promote voluntary compliance, and close loopholes that had previously allowed some large-scale transactions to escape taxation.
The clarification comes amid mixed reactions from investors and market operators, some of whom had expressed fears that the implementation of the reformed CGT could trigger sell-offs and weaken market confidence.
Oyedele, however, assured that the reform was designed with the input of key stakeholders, including the private sector, and that its long-term goal is to create a more stable, transparent, and equitable tax environment that supports economic growth and investment.
Financial analysts have welcomed the clarification, saying it could calm market jitters and help restore investor confidence following weeks of uncertainty surrounding the scope of the new tax measures.
