Small and medium enterprises (SMEs) and other players in Nigeria's capital market are raising concerns over the implications of the new tax reforms on business growth and competitiveness.
At a virtual stakeholder dialogue on the Capital Gains Tax (CGT) provisions of the Tax Reform Act, market operators, investors, regulators, and policymakers called for continuous engagement to ensure that the new rules do not stifle businesses, particularly SMEs who rely on the capital market for funding.
One of the major issues discussed was the introduction of a 30% tax on gains from the disposal of shares, which aligns with Nigeria's corporate income tax. While noting that the reform mirrors global practices, participants stressed the need for flexibility in implementation to protect Nigeria's investment appeal and avoid discouraging SME participation in the market.
Other concerns raised included the calculation of base costs, cross-listed securities, and the risk of double taxation, which could complicate compliance for smaller businesses and emerging investors.
Speaking at the dialogue, NGX Group Chairman, Alhaji Umaru Kwairanga, said that policy reforms must be clearly communicated to protect investor confidence, especially for SMEs who form a critical part of the market ecosystem.
Adding government's perspective, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained that the reforms aim to create a fair and sustainable tax environment, not hinder investments. He stressed that engagement with stakeholders is key to ensuring smooth implementation.
Temi Popoola, Group Managing Director of NGX Group, added that reforms of this scale create uncertainties for businesses, but platforms like the dialogue help provide clarity, foster resilience, and support long-term SME growth.
Participants commended the initiative, noting that ongoing dialogue will be crucial to balancing revenue generation with business sustainability. By creating space for open discussion, NGX Group is helping ensure that SMEs and other market players can adapt to tax changes without losing competitiveness.
