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Comment on Capital Market: FG Introduces 25% CGT To Curb Equity Flight To Bonds by ONGOING AUCTIONING
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Comments for THEWILL NEWS MEDIA
September 30, (THEWILL) — The Federal Government has introduced a new rule clarifying the application of Capital Gains Tax (CGT) on share disposals, aimed at discouraging capital flight from equities into fixed-income assets.
Nigeria’s equities market has been one of the few bright spots in the economy this year.
Policy Consistency and Market ConfidenceAnalysts caution that the new CGT may be seen as a short-term revenue measure rather than part of a coherent capital market strategy.
For some institutional investors, absorbing a 25% CGT may still be preferable to the risks of an unpredictable equities market.
At stake is whether the new CGT will genuinely strengthen the equities market or push capital toward safer havens, undermining the very sector it seeks to protect.