Investors in Nigeria’s stock market are on edge after a series of events, including a recent post by U.S. President Donald Trump suggesting potential intervention in Nigeria, combined with the country’s new Capital Gains Tax, set to take effect on January 1, 2026.
Speaking on Nigeria Info’s The Broad Street Drive with Hillary Nnoruka, chartered accountant, Stephen Fidelis said the U.S. statement added to market fears that were already heightened by the new tax rules.
“It’s a mix of all of that. The tweet from the U.S. president and the new capital gains tax provisions have both heightened uncertainties, and investors don’t mix well with uncertainties,” he said.
The Trump post on October 31 contributed to a market decline in early November, wiping out over ₦2 trillion in value over three trading days.
This came before the November 11 drop of 5 percent, the largest single-day decline in 15 years, which was influenced by the planned capital gains tax changes.
Fidelis submitted that the combined effect of global political commentary and local tax policy has made investors hesitant to commit funds to equities.
Under the new tax law, capital gains will no longer be a flat 10 percent rate. Individuals could pay zero to 25 percent, depending on income, while companies may pay up to 30 percent.
Low-income earners making ₦800,000 or less annually are exempt, and investors with annual gains below ₦10 million will also pay no tax.
Fidelis suggested that unless the government reviews the rates, more investors may move their funds into safer, fixed-income assets in early 2026.
“For individuals, the capital gains tax will now range from 0% to 25%, depending on your income level,” he said.
The finance ministry has indicated it is reviewing the CGT rates, but no amendment has yet been made.
Investors are closely watching how the government will respond before the new rules take effect.
