By Progress Godfrey, Abuja
The Senate Committee on Capital Market and Institutions has raised alarm over a ₦2 trillion loss in the Nigerian capital market, following panic sales triggered by the recent 30% Capital Gains Tax (CGT) increase on share transactions above ₦150 million.
Chairman of the committee, Senator Osita Izunaso, spoke at the 2025 Investment Forum in Abuja on Wednesday, warning that the sudden hike could undermine investor confidence and stall the progress achieved through recent market reforms.
“While taxation is essential for revenue generation, a sudden and steep increase in capital gains tax could discourage long-term investment and destabilise the market,” Izunaso said.
The senator explained that the nation’s financial sector is undergoing reforms under the Investment and Securities Act (ISA) 2025, aimed at strengthening regulation, enhancing transparency, and protecting investors.
“The increase of the CGT from 10% to 30% on share sales above ₦150 million, effective January 2026, has understandably concerned investors. Anticipating this change, significant disposals by major investors occurred, resulting in a market capitalisation drop of over ₦2 trillion last week alone. Fiscal measures must not inadvertently discourage long-term capital formation,” he said.
Izunaso called on the Finance Minister to urgently review the policy to maintain market stability and sustain economic recovery:
“A balanced approach will protect investor confidence, sustain momentum, and preserve the positive trajectory our capital markets have achieved.”
The lawmaker reaffirmed the legislature’s commitment to building a capital market that supports inclusive economic growth and aids the Federal Government’s target of a $1 trillion economy by 2030.
Delivering the keynote address, Akwa Ibom State Governor, Pastor Umo Eno, praised the forum’s theme, “Nigeria’s New Financial Landscape: Reforms, Risks, and the Road to Wealth Creation,” and highlighted his state’s investments in aviation, maritime, tourism, and manufacturing, including Ibom Air and the ongoing Ibom Deep Seaport and Industrial City projects.
Represented by the state Commissioner for Information, Aniekan Umana, Eno emphasized the importance of sustainable industrialization, agriculture, and technology to drive wealth creation, while urging subnational governments to balance reform risks with opportunities for inclusive, technology-driven growth.
“Wealth creation must no longer be the exclusive responsibility of the Federal Government. States must drive productivity, innovation, and local enterprise while being mindful of risks such as market volatility, inflation, and global uncertainties,” he said.
Convener of the Investment Forum, Nancy Illoh-Nnaji, noted that the forum was organized to foster financial literacy, transparency, and investor empowerment amid sweeping reforms in taxation, banking, insurance, and capital markets.
“Our nation stands at a critical juncture, but real transformation will only happen when citizens are informed, investors are discerning, and policymakers are accountable. Financial education is not a luxury; it is a necessity because in today’s Nigeria, what you don’t know can cost you,” she said.
The post Senate flags ₦2trn market loss over 30% Capital Gains Tax Hike, urges review appeared first on Vanguard News.
