Public debate is vital for reform. But debate must be anchored on facts, not misrepresentation. Recent reports by Nairametrics and BusinessDay on Nigeriaโs capital gains tax (CGT) reform mischaracterized both the policy and my engagements with key stakeholders. Given their reach and credibility, it is important to set the record straight.
1. ๐๐ง ๐๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ ๐๐๐ง๐ญ๐ข๐ฆ๐๐ง๐ญ
๐๐ฅ๐๐ข๐ฆ: (Nairametrics): Foreign investors were frustrated with Taiwo Oyedele. The mood on the call was one of โpalpable disappointment and unease.โ
๐ ๐๐๐ญ: A total of 281 participants attended the call from more than 10 countries. Contrary to claims of โfrustrationโ and โunease,โ about 80% of participants who gave feedback after the event rated the engagement 9 or 10 out of 10, with an overall average of 8.6. From the comments, many wished we had more time โ certainly not the expected reaction of frustrated investors.
2. ๐๐ง ๐๐๐๐จ๐ฅ๐จ๐ ๐ข๐๐๐ฅ ๐๐๐๐๐ฅ๐ฌ
๐๐ฅ๐๐ข๐ฆ: Oyedeleโs tone was โideological,โ described as โsocialistโ for saying that the bottom 97% cannot pay tax and the government should focus on the top 3%.
๐ ๐๐๐ญ: My statement was in the context of low income earners and Nano businesses. Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation, a principle embedded in virtually every advanced economy.
3. ๐๐ง ๐๐จ๐ฆ๐ฉ๐๐ญ๐ข๐ญ๐ข๐ฏ๐๐ง๐๐ฌ๐ฌ
๐๐ฅ๐๐ข๐ฆ: Oyedeleโs remarks on the CGT send troubling signals about Nigeriaโs competitiveness and predictability.
๐ ๐๐๐ญ: Competitiveness is not defined by the absence of CGT. The most advanced capital markets – the U.S., U.K., South Africa, among others – apply CGT and remain attractive to investors while many countries with no CGT lack robust capital markets altogether. Competitiveness depends on overall returns and risk factors, not on the absence of CGT.
4. ๐๐ง ๐๐๐ฑ ๐๐ฎ๐ซ๐ข๐ฌ๐๐ข๐๐ญ๐ข๐จ๐ง๐ฌ
๐๐ฅ๐๐ข๐ฆ: Oyedele inaccurately argued that foreign portfolio investors (FPIs) would pay equivalent taxes in their home countries even if Nigeria did not collect CGT.
๐ ๐๐๐ญ: In reality, nearly all investors are taxable in their home countries and, where they are not, it is only fair that the source country collects its fair share of tax. A simple fact-check would have clarified this. See here https://taxsummaries.pwc.com/…/capital-gains-tax-cgt…
5. ๐๐ง ๐๐ง๐จ๐ง๐ฒ๐ฆ๐จ๐ฎ๐ฌ ๐๐ฅ๐ฎ๐ซ๐ฌ ๐๐ง๐ ๐๐ง๐ฉ๐ซ๐ข๐ง๐ญ๐๐๐ฅ๐ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐ฌ
๐๐ฅ๐๐ข๐ฆ: An unnamed โAfrica-focused fundโ described Oyedeleโs position as โmostly BS.โ
๐ ๐๐๐ญ: Beyond the unprofessional language quoted anonymously, which lowers the standard of professional journalism, the claim portrays ignorance. The top African capital markets – South Africa, Morocco, Botswana, Nigeria and Egypt – all apply tax on shares. Hopefully the โAfrica-focused fundโ has not been evading taxes across the continent.
6. ๐๐ง ๐๐ข๐ฌ๐ซ๐๐ฉ๐จ๐ซ๐ญ๐ข๐ง๐ ๐๐ฒ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ๐๐๐ฒ
๐๐ฅ๐๐ข๐ฆ: A softened but largely similar publication by BusinessDay further claimed that Nigeria is โtripling CGT for foreign equity investors.
๐ ๐๐๐ญ: This is false. Both local and foreign investors benefit from exemptions based on thresholds and reinvestment. Tax applies only where those thresholds are exceeded without reinvestment. Labelling this as a punitive tax on foreign investors is misleading.
๐๐ก๐ ๐๐จ๐ฅ๐ ๐จ๐ ๐ญ๐ก๐ ๐๐๐๐ข๐
It is troubling when reputable outlets amplify misinformation. Professional journalism demands diligence – independent verification of facts, avoidance of anonymous slurs, distinguishing between biased opinion and credible evidence for balanced reporting.
Since May 2023, investors in Nigeriaโs capital market have earned average returns of over 100% even in US dollar terms (capital gains, dividends, currency appreciation). Expecting local and foreign investors who wish to exit to pay tax on their net gains is neither unusual nor hostile, it is tax equity.
๐ ๐ข๐ง๐๐ฅ ๐๐จ๐ซ๐
I rarely respond to misinformation, especially from non-credible sources. But given the credibility of Nairametrics and BusinessDay, clarification is necessary. Intentional misreporting is not journalism; it is sabotage and careless reporting is negligence.
While ensuring progressivity and equity across board beyond CGT, the tax reform addresses a myriad of tax issues plaguing the capital market. This is an opportunity to attract more investments into the market especially by retail investors away from gambling and virtual assets trading that today attract more interest from Nigerians than the capital market.
Along with my team, I remain focused on the national assignment I have been entrusted with: contributing modestly but firmly to reforms that strengthen Nigeriaโs economy and promote fairness.
I urge the media to play its part responsibly – to interrogate rather than sensationalize, and to inform, not mislead.