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In response to significant market concerns, Nigerian officials have announced that they will review a new 30% capital gains tax on the sale of shares, which is currently set to take effect on January 1. The rule, part of a recent tax law, would triple the tax burden for foreign investors unless they reinvest the proceeds in other Nigerian equities. The Nigerian Exchange Group has strongly advocated for a five-year delay or removal of the tax, arguing it could severely deter international capital inflows. This concern contributed to a major sell-off, with local equities dropping 6.9% in November. While the government confirmed the broader tax law implementation will proceed on schedule, officials acknowledged the need to re-examine this specific provision, offering hope to investors who recently returned to the market.
Bloomberg