The Chairman of the Nigerian Exchange Group (NGX), Alhaji (Dr) Umaru Kwairanga, has urged stakeholders to carefully manage information surrounding the newly enacted Nigerian Tax Act 2025, cautioning that misconceptions, particularly around Capital Gains Tax (CGT), are already influencing market behaviour.

Speaking on Tuesday at the Chartered Institute of Capital Market Academics of Nigeria (CMAN) Distinguished Guest Public Lecture Series held virtually, Kwairanga noted that while taxation remains a permanent and essential feature of civic life, recent amendments to Nigeria’s tax framework have generated intense debate across financial and economic circles.

Citing the famous quote by American statesman Benjamin Franklin, “Nothing is certain except death and taxes,” the NGX Chairman said it was unsurprising that the sweeping changes to the tax laws have attracted scrutiny. However, he stressed that perceptions, especially those not grounded in accurate information, pose a real threat to market stability.

“In the capital market, the focus of most commentators has been on Capital Gains Tax. CGT is not new in the market, but there is a perception that the new tax act increases the rate to a level that will have a high negative impact on investors. Perception matters a lot in financial markets and can move markets long before any real action takes place. We have seen that in the recent volatility in our market,” he said.

It will be recalled that last week, the capital market suffered one of its steepest single-day losses in recent years after misinformation surrounding the Government’s Capital Gains tax (CGT) policy triggered panic among investors, wiping out an estimated N4.6 trillion in market value.

Kwairanga warned that unmanaged or flawed interpretations of the law could trigger unintended consequences for both market performance and broader economic confidence.

He commended the Chairman of the Presidential Fiscal and Tax Reforms Committee, Professor Taiwo Oyedele, describing him as a consistent resource in clarifying the intricacies of the new tax regime. He urged Oyedele to continue engaging with Nigerians to address concerns and consider refining aspects of the Act where necessary.

“I want to thank you for your work before and after the enactment of the legislation. I also urge you to listen to the questions and comments that Nigerians may have, with a view to amending any areas that may need to be fine-tuned.”

Kwairanga also applauded Professor Uche Uwaleke and CMAN for fostering deeper academic discourse on developments in the capital market, noting that such engagements are critical for shaping informed policy and investment decisions.

The event brought together capital market scholars, regulators, and industry practitioners to evaluate the far-reaching implications of the Nigerian Tax Act 2025, with a particular focus on how changes to Capital Gains Tax could reshape investor behaviour and market competitiveness.

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