Oyedele defends capital gains tax reforms, says investors rated engagement 8.6 out of 10

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, says feedback from participants after a recent virtual meeting to clarify Nigeria’s new Capital Gains Tax (CGT) provisions showed an average satisfaction score of 8.6 out of 10.

Oyedele made the remark on Monday in a statement posted on his X (formerly Twitter) account, in response to a Nairametrics report claiming that many foreign investors were frustrated by the tax reform.

He said 281 participants from more than 10 countries attended the call, and that “about 80% of participants who gave feedback rated the engagement 9 or 10 out of 10, with an overall average of 8.6.”

“From the comments, many wished we had more time — certainly not the expected reaction of frustrated investors,” Oyedele added.

The tax policy chief also addressed criticism, describing his approach as socialist for focusing CGT on the wealthiest 3%.

He said exempting low-income earners and small businesses while taxing the rich fairly was a principle of progressive taxation, not socialism.

“Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation — a principle embedded in virtually every advanced economy,” he said.

Oyedele dismissed concerns that the new CGT provisions could harm Nigeria’s competitiveness, arguing that many advanced economies with thriving markets still apply capital gains tax.

“Competitiveness is not defined by the absence of CGT,” he said. “The most advanced capital markets — the U.S., U.K., South Africa, among others — apply CGT and remain attractive to investors, while many countries with no CGT lack robust capital markets altogether.”

He added that competitiveness depends on overall returns and risk factors, not on whether a country imposes a capital gains tax.