The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has faulted recent reports by Nairametrics and BusinessDay on Nigeria’s capital gains tax (CGT) reform, describing them as misleading and inconsistent with the facts.
In a detailed statement titled “Setting the Record Straight on Capital Gains Tax”, Oyedele said the reports mischaracterised both the objectives of the reform and his engagement with key stakeholders.
He noted that while public debate on reform is welcome, it must be based on facts rather than misrepresentation.
Investor Sentiment
Responding to claims by Nairametrics that foreign investors expressed frustration and disappointment during a virtual engagement, Oyedele said the feedback from the 281 participants from over ten countries was overwhelmingly positive.
“About 80 percent of participants rated the session 9 or 10 out of 10, with an overall average of 8.6. Many wished we had more time — hardly the reaction of frustrated investors,” he stated.
On Ideological Labels
He dismissed suggestions that his views were “socialist,” explaining that his remarks about exempting low-income earners and taxing the wealthy were rooted in progressive taxation — a globally accepted principle.
“Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation,” he said.
Competitiveness and Global Practice
Oyedele also rejected the claim that the CGT reform would undermine Nigeria’s competitiveness, arguing that advanced economies such as the United States, the United Kingdom, and South Africa apply capital gains tax while remaining attractive to investors.
“Competitiveness depends on overall returns and risk factors, not on the absence of CGT,” he noted.
On Foreign Investors and Tax Jurisdiction
Addressing another claim that foreign portfolio investors would be unfairly taxed, Oyedele said most investors are already taxable in their home countries. He stressed that it is only fair for the source country to collect its share where applicable.
He cited the PwC global tax summaries to support his position.
Misreporting by BusinessDay
Oyedele also refuted BusinessDay’s report alleging that Nigeria was “tripling CGT for foreign equity investors,” describing the claim as false and misleading.
“Both local and foreign investors benefit from exemptions based on thresholds and reinvestment. Tax applies only where those thresholds are exceeded without reinvestment,” he explained.
On Anonymous Slurs
He criticised the use of anonymous quotes describing his position as “BS,” calling it unprofessional and a deviation from responsible journalism.
“The top African capital markets — South Africa, Morocco, Botswana, Nigeria, and Egypt — all apply tax on shares. Hopefully, the so-called ‘Africa-focused fund’ has not been evading taxes across the continent,” he remarked.
Media Responsibility
Oyedele expressed concern that respected media outlets were amplifying misinformation, warning that intentional misreporting amounts to sabotage while careless reporting reflects negligence.
https://x.com/taiwoyedele/status/1982747202335162835
“Professional journalism demands diligence — independent verification of facts, avoidance of anonymous slurs, and distinguishing between biased opinion and credible evidence,” he said.
Reaffirming Commitment
He reaffirmed his committee’s commitment to ensuring fairness and equity in the ongoing tax reforms, noting that investors in Nigeria’s capital market have recorded over 100 percent returns in dollar terms since May 2023.
“Expecting investors who wish to exit to pay tax on their net gains is neither unusual nor hostile — it is tax equity,” he stated.
Oyedele urged the media to play a constructive role by interrogating facts rather than sensationalising issues.
“Along with my team, I remain focused on contributing to reforms that strengthen Nigeria’s economy and promote fairness,” he said.
