Senate Raises Concerns over Hike in Capital Gains Tax, Wants Proclamation on Commencement Delayed

•Says market capitalisation lost N2trn in one week over investors’ panicky disposal of shares 

•Urges FG to adopt balanced approach on tax

•Probes trillions of naira generated as Stamp Duty revenues since 2016 

•CBN: We’ve achieved 95% financial inclusion, moving towards economic inclusion

Ndubuisi Francis and Sunday Aborisade in Abuja

Senate Committee on Capital Market and Institutions has raised concerns over a provision in the yet-to-be-implemented Nigerian Tax Act, 2025, urging the federal government not to enforce the aspect relating to Capital Gains Tax on January 1, 2026 until such concerns are addressed.

The upper chamber also launched a sweeping investigation into the generation and utilisation of stamp duty revenues across the country.

The chairman of Senate Committee on Capital Market and Institutions, Senator Osita Izunaso, conveyed the committee’s concerns in Abuja, in a keynote address he delivered at the MoneyLine with Nancy Investment Forum 2025, themed, “Nigeria’s New Financial Landscape: Reforms, Risks, and the Road to Wealth Creation.”

Izunaso’s keynote address was on, “Redefining the Rules: The Investment and Securities Act 2025 and the Future of Nigeria’s Capital Market.”

According to him, through decisive reforms, macroeconomic stabilisation, and policies that have strengthened investor confidence, the President Bola Tinubu administration has provided a foundation for sustainable growth in the capital markets.

But he expressed concern that the impending Capital Gains Tax had already triggered a run on the capital market, as panicky investors resorted to disposing their shares recently, resulting in a loss of N2 trillion on market capitalisation, in one week alone.

Izunaso said, “However, a recent development under the Nigerian Tax Act 2025, the increase of the Capital Gains Tax on the sale of shares worth N150 million and above from 10% to 30% effective January 2026 has created understandable concern among investors.

“In anticipation of this change, we have observed significant disposals by major investors, resulting in a notable decline in market capitalisation over the past few days.

“As a matter of fact, the market lost over N2 trillion last week alone largely on account of this panic sale.

“While taxation is essential for revenue generation, it is equally critical that fiscal measures do not inadvertently undermine investor confidence or discourage long-term capital formation.”

He urged Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to explore mechanisms to address the concern, by ensuring that both domestic and foreign investors remained engaged and confident in the Nigerian market.

According to him, a balanced approach would sustain the momentum, protect market stability, and preserve the positive trajectory that the capital markets have achieved under the current reforms.

The senator, who expressed his committee’s desire to meet with Tinubu on the Capital Gains Tax issue, urged Edun to delay the proclamation on the commencement of that particular tax on January 1, 2026 until the concerns were addressed.

He applauded Tinubu for assenting to the Investment and Securities Act (ISA 2025), stating that the Nigerian economy is at a pivotal juncture, where structural reforms, fiscal discipline, and investment-friendly policies are converging to redefine the country’s financial and capital market architecture.

In his address, Governor of Akwa Ibom State, Umo Eno, said the introduction of bold fiscal and financial reforms, including the Investment and Securities Act 2025, Insurance Industry Reform Act 2025, new tax laws, and deregulation of the electricity market, marked a decisive shift in the national economic trajectory.

Eno, represented by the state’s Commissioner for Information, Hon. Aniekan Umana, stated that Akwa Ibom had already commenced the process of taking ownership of its power sector, laying the groundwork that will enable it to generate, transmit, and distribute electricity within the state.

“It is through such deeper unbundling that subnational governments can truly serve the interests of their people, attract private capital, and accelerate industrialisation,” he said.

Eno urged states to drive productivity, innovation, and local enterprise, adding that to achieve this, there must be a synergy between policy and people, between fiscal reform and financial education, between the boardroom and the marketplace.

He stated, “We must also be mindful of the risks that accompany reform – market volatility, inflationary pressures, and global uncertainties.

“Yet, within these risks lie opportunities to reinvent governance, promote inclusive growth, and leverage technology to deepen financial inclusion.”

In her opening remarks, the convener of the investment forum, and Executive Producer of Moneyline with Nancy on AIT, Mrs. Nancy Nnaji, said the goal of the event was not only to deepen understanding, but also to empower Nigerians with actionable knowledge, inspire collaboration across sectors, and promote responsible investment practices that will secure both individual and national prosperity.

Nnaji stated, “This forum, therefore, is more than a gathering; it is a strategic conversation about Nigeria’s rewritten financial landscape, one that has been reshaped by fiscal and monetary reforms, new regulatory directions, and evolving market realities.

“It provides an opportunity to understand the implications of these changes, assess the emerging risks, and identify the pathways that lead to inclusive and sustainable wealth creation.”

She urged Nigerians to desist from investing in Ponzi schemes, lamenting that about 60 million people are involved in one form of ponzi investment, betting or the other.

She urged Nigerians to embrace investments that were regulated to guarantee such investments.

Director, Consumer Protection and Financial Inclusion, Central Bank of Nigeria (CBN), Dr. Aisha Isa-Olatinwo, stated that financial inclusion had become a national priority targeted at providing affordable financial services to all Nigerians.

Isa-Olatinwo said the country had achieved about 95 per cent inclusion and was now moving towards “economic inclusion” to empower women, youths, and MSMEs.

She said CBN had merged its financial inclusion and consumer protection departments to strengthen trust and fair treatment in banking.

Isa-Olatinwo added that the apex bank was deploying new complaint management systems and USSD channels to reach rural Nigerians.

Equally speaking at the event, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, said the ongoing tax reforms were aimed at fairness, growth, and efficiency rather than revenue collection.

Oyedele explained that Nigeria was on the verge of economic collapse before the reforms began. He said the worst was over, with macroeconomic indicators improving.

He reiterated that businesses with turnover of less than N100 million would be exempt from corporate tax, while low-income earners would be protected from additional tax burdens.

He further stated that share disposals up to N150 million annually were exempt from capital gains tax, adding that larger disposals could also be free from taxation if proceeds were reinvested.

Oyedele expressed dismay over misinformation, which “caused panic and real losses,” stressing that the clarification has reversed much of the market sell-off.

Meanwhile, Senate Public Accounts Committee, Thursday, launched a comprehensive investigation into the generation and utilisation of stamp duty revenue across Nigeria.

That marked a major step in the quest to promote transparency, block leakages, and ensure that public funds were used effectively for the welfare of citizens.

The inquiry, led by Senate Public Accounts Committee, chaired by Senator Ahmed Aliyu Wadada (SDP, Nasarawa West), focused on how much had been generated from stamp duties on agreements involving government institutions, individuals, and corporate bodies, and how such funds had been managed or remitted since 2016.

Speaking during a press briefing at the National Assembly, Wadada said the probe was aimed at ensuring that every naira generated from stamp duties was properly accounted for, and channelled into developmental projects that directly benefited Nigerians.

He said, “We are determined to ensure the resources generated through stamp duties are being used transparently and for the benefit of the people.

“The goal is to identify any areas where revenue is being lost and ensure that funds are properly remitted and utilized for public good.”

Wadada stated that the committee had already written to key financial and government institutions, including all commercial banks, Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), and Nigeria Governors Forum (NGF).

He said the panel was demanding detailed records of stamp duty revenues from 2016 to 2024.

Each institution was expected to provide documentary evidence, accompanied by figures, showing how much was generated, remitted, or received under the stamp duty regime.

According to the committee, commercial banks are directed to disclose how much they collectively generated from stamp duty charges on individual accounts and business transactions during the eight-year period.

CBN was asked to provide data on how much of that revenue was actually remitted by the banks and subsequently transferred into the Treasury Single Account (TSA).

Wadada also revealed that the probe would cover stamp duties charged on corporate transactions, including those involving limited liability and oil and gas companies.

FIRS was specifically asked to furnish the committee with a comprehensive data on stamp duties collected from agreements executed by or involving government entities and private corporations.

The Nigerian Governors’ Forum, through its Chairman, Governor Abdulrahman Abdulrazaq of Kwara State, was also asked to disclose how much the states had received from stamp duty proceeds over the years.

Wadada said, “This committee believes this exercise must be all-inclusive and all-encompassing.

“We have written to the Nigeria Governors’ Forum to provide information on all proceeds from stamp duty revenue received by the states and other related inflows.

“This will help us understand what is where and how effectively such funds have been utilised.”

He stated that the committee’s consultants had already conducted preliminary data analysis suggesting significant sums were generated. But he insisted that the figures must first be verified through official submissions from the relevant agencies.

He said, “We have a fair understanding of what is involved because this is a very functional committee. That fair understanding is not enough for us to go public.

“We want to compare data from all sides before we invite or summon anyone. Only then can we make an informed statement on the true status of stamp duty revenue.”

The committee set a deadline of November 25, 2025 for all concerned institutions to respond with their documentation.

The panel said it will thereafter begin reconciling the data, questioning discrepancies, and possibly summoning officials for further clarification.

Wadada emphasised that the investigation aligned with President Bola Tinubu’s commitment to maximising national revenue and ensuring its effective utilisation for the collective good.

He said, “It is one thing to generate revenue; it is another to ensure it is judiciously utilised.

“The amount being generated from stamp duties is humongous, and the legislature cannot afford to look the other way. Our responsibility is to ensure that every kobo works for the people.”

Analysts have long argued that stamp duties represent a potentially vast but poorly accounted for revenue stream for the Nigerian government.

Despite multiple policy pronouncements and reforms, the lack of transparency in collection and remittance has remained a recurring issue.

The senate’s renewed scrutiny, if properly carried through, is being perceived as a decisive move to sanitise the process and ensure accountability in a revenue source that could significantly boost Nigeria’s non-oil income base.

With the probe now underway, the Public Accounts Committee pledged to leave no stone unturned in tracing, auditing, and reconciling every component of the stamp duty revenue chain, from banks and tax agencies to the CBN and state governments.

Wadada said, “This investigation is not about witch-hunting anyone. It is about ensuring that public resources serve public interest.

“Nigerians deserve to know how much has been generated in their name and how those funds are being used to improve their lives.”