Nigerian Bourse’s Parent Urges Caution on Capital Gains Tax as Stocks Bleed
The head of NGX Group, the parent of Nigeria’s stock exchange, has called for caution in the implementation of the
The head of NGX Group, the parent of Nigeria’s stock exchange, has called for caution in the implementation of the proposed capital gains tax as the equities extended their losing streak to seven consecutive days.
Temi Popoola, group managing director/chief executive officer of NGX Group, highlighted the capital market’s role as a catalyst for inclusive growth.
“The capital market is not only a platform for attracting investment but also a tool for creating wealth for Nigerians,” he said on Tuesday. “Policies such as the capital gains tax must be carefully designed to balance government revenue objectives with investor confidence and market growth.”
He said the NGX Group remains committed to supporting the President Bola Tinubu’s Renewed Hope Agenda by channeling private capital into initiatives that “deliver sustainable, long-term impact”.
Popoola made the remarks as the Nigerian Exchange (NGX) hosted the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, at the Closing Gong Ceremony to commemorate the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) Series 2.
The listing took place against the backdrop of cautious trading in the equities market, as investors recalibrate portfolios in response to geopolitical tensions arising from the US–Nigeria diplomatic standoff, the proposed capital gains tax, year-end portfolio rebalancing, and expectations of window-dressing by institutional players. While liquidity remains robust, analysts emphasise that aligning fiscal policy with investor expectations is critical to sustaining confidence and deepening long-term market participation, the NGX said in a statement.
Responding, Edun assured stakeholders that the Federal Government has noted the concerns around Capital Gains Tax and remains committed to ongoing consultation with the market. “We have noted the concerns around Capital Gains Tax and will continue to engage with the capital market to ensure any decisions deliver optimal outcomes for both Nigerians and the market.”
