On this very edition of Talknomics, Dr. Ayodeji Ebo, Managing Director and Chief Business Officer at Optimus by Afrinvest, unpacked the implications of Nigeria’s new tax reforms for investors, particularly the introduction of a graduated Capital Gains Tax (CGT).
Under the new structure, Nigerians earning above N5 million annually will be subject to 30% CGT on gains from stock investments, while those earning between N800,000 and N5 million will pay 20%. Individuals below the N800,000 threshold are exempt. Ebo described the policy as progressive and focused on taxing wealthier investors, not discouraging retail participation.
In his H2 2025 outlook, Dr. Ebo identified sectors with high potential, including FMCGs, cement, and upstream oil players like Seplat and Aradel. He also flagged CWG in the tech space as one to watch, citing strong fundamentals and growth capacity. As interest rates are expected to decline, equities could gain momentum due to reduced borrowing costs and renewed profitability.
Ebo also pointed to the rise in commercial papers as a response to high bank lending rates. However, he advised investors to prioritise instruments backed by at least two credit ratings.
He further highlighted the need for a national credit scoring system tied to NINs, noting its potential to unlock responsible consumer lending and broader economic growth.
Watch the full Talknomics episode with Dr. Ayodeji Ebo now on Nairametrics TV.
Even in the USA with highly developed stock markets, CGT is 20% max, so is this law supposed to encourage or discourage investment in the tiny Nigerian stock markets. Moreover, is 5m annual income the new yardstick for measuring middle class status in Nigeria? A family of 6, ie 4 children and 2 parents earning such will still struggle heavily to survive under current cost regime of high rents, high fuel costs, rising school fees, food prices, to mention but a few. Hence, the standard of living that level of income can provide for such a family is nowhere near middle class even in other serious emerging economies. In serious places, affected stakeholders would re-engage the government on such outrageous rates, but in Nigeria, such stakeholders would rather prefer to look for ways to beat the system, hence only the already overburdened law abiding citizens will continue to bear the brunt of such highhanded legislation.
This government has not seen anything yet, oil price is going down and alternative energy from oil is what people are looking for. By the time oil will be of little use then the government will even tax the job applicants and the students