December 03, (THEWILL) — Nigerian investors will now enjoy full capital gains tax (CGT) relief when they reinvest proceeds from the sale of shares, following the implementation of updated tax rules aimed at boosting participation in the capital market.
Under the new provision, investors who sell shares and reinvest the gains into purchasing additional shares within a stipulated timeframe will be exempt from paying CGT on the transaction. The measure is designed to encourage long-term investment, deepen market liquidity, and strengthen confidence in the equities market.
Tax analysts say the relief is a significant incentive, especially at a time when market volatility has prompted many retail investors to adopt a more cautious approach. By removing the tax burden on reinvested gains, the policy is expected to support portfolio expansion and reduce barriers to increased market activity.
Market operators have welcomed the development, noting that it aligns with ongoing reforms aimed at revitalising the Nigerian capital market. They believe the incentive could attract new investors, enhance trading volumes, and support the broader objective of mobilising long-term funds for economic growth.
However, stakeholders also stress the need for clear guidance and public awareness to ensure investors fully understand how to qualify for the exemption and avoid compliance issues.
The relief is expected to take effect immediately, offering investors fresh opportunities to reinvest and grow their holdings without incurring additional tax liabilities.
Ogochukwu Onwaeze
