The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Nigeria’s 2026 tax reform law is designed to protect low-income earners, increase disposable income, and fully exempt small-scale investors in the capital market from capital gains tax.
Oyedele made the statement during the Cowry Quarterly Economic Discourse themed “Nigeria in 2026: Will Politics Trump Economic Reform?” held in Lagos on January 16, 2026.
He explained that the law provides automatic capital gains tax exemptions for individuals whose total proceeds from asset disposal do not exceed N150 million, provided the gain is not more than N10 million within 12 months.
Oyedele noted that pension fund administrators and real estate investment trusts also enjoy exemptions when proceeds are reinvested, while high-net-worth individuals only become liable when exiting investments permanently without reinvestment.
He described Nigeria’s capital gains tax framework as one of the most competitive globally, encouraging reinvestment, liquidity, and market growth, with transaction costs kept minimal to stimulate activity.
The committee is drafting implementation regulations to clarify grey areas, and any amendments requiring legislative action will be forwarded to President Bola Tinubu for consideration.
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Oyedele highlighted that most young Nigerians investing in digital and virtual assets operate at small scales, making taxation concerns largely misplaced.
He warned that misinformation has discouraged youth participation in the stock market, with many wrongly believing returns attract up to 30 per cent tax.
The tax expert stressed that the reforms stop the taxation of poverty, protect low-income earners, and ensure those with higher capacity bear a fairer share.
Under the new framework, Nigerians earning the national minimum wage are fully exempt from personal income tax, while the taxable income threshold has been significantly raised after deductions and reliefs.
Oyedele explained that the N800,000 figure refers to taxable income, not gross income, translating to about N1 million to N1.2 million gross after allowances, with minimum wage earners paying no tax.
He recalled that previous nationwide data showed about 96 per cent of personal income tax came from low-income earners, a situation he described as inequitable and economically dangerous.
