By Bassey Udo
Amid the impending hike of the Capital Gains Tax rate come January 1, 2026, panicky investors in the Nigerian Capital Market have stirred a run on the market capitalization. resulting in a loss of over N2trillion in the last one week.
The Chairman of the Senate Committee on the Capital Market and Financial Institutions, Osita Izunaso, said the development calls for steps to be taken by the government to adjust the timing of the implementation of the aspect of the Nigerian Act, 2025 relating to capital gains by investors in the market.
A provision of the proposed tax law pending implementation effective January 1, 2026 aims to impose an increment of the Capital Gains Tax rate from 10 to 30% on the sale of shares held by an investor valued at about N150m and above.
To avoid being trapped by the proposed tax law, scores of investors in the capital market have already pressed the panic button as they rushed to dispose of their holdings in various equities, resulting in a run in the market value to the tune of over N2trillion so far.
Speaking at the “MoneyLine with Nancy Investment Forum 2025” in Abuja on Wednesday on the theme, “Nigeria’s New Financial Landscape: Reforms, Risks, and the Road to Wealth Creation”,
Izunaso expressed concern over the development, urging the government to reconsider the take off of the implementation of the new tax law from January 1, 2026 till further notice.
Although he acknowledged the impact of Tinubu administration’s economic reforms and macroeconomic stabilisation
policies that have strengthened investor confidence and laid the foundation for sustainable growth in the capital
market, he said government needs to address investors’ concerns that have triggered the panic and the loss of N2tr capitalisation in one week.
“In anticipation of this change, we have observed significant disposals by major investors of their shares in the maeket, resulting in a notable decline in market capitalisation over the past few days.
“As a matter of fact, the market lost over N2 trillion last week alone largely on account of these panic sales,” he noted.
While taxation was essential for revenue generation, the Senate Committee Chairman pointed out that it was equally critical for fiscal measures to be adopted to avoid inadvertently undermining investor confidence or discouraging of long-term capital formation.
He implored the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to look into the possibility of addressing the concern, by ensuring that both domestic and foreign investors remained adequately engaged to restore confidence in the Nigerian market.
Apart from the adoption of a balanced approach in the implementation of the new tax policy to sustain the momentum, he said government should take steps to protect the market, ensure its stability, and preserve the positive trajectory achieved so far under the ongoing reforms.
The lawmaker, who said he would meet with the fiscal authorities on the new tax law, pleaded with Finance Minister to stay action on its proposed take off date of January 1, 2026 until the concerns were resolved.
On the assent to the Investment and Securities Act (ISA 2025), Izunazo said it was clear the Nigerian economy was at a pivotal juncture, where structural reforms, fiscal discipline,and investment-friendly policies were converging to redefine the overall financial and capital market architecture.
Also speaking, the Akwa Ibom State Governor, Umo Eno, who gave the keynote address at the occasion, said the introduction of bold fiscal and financial reforms my the government marked a decisive shift in the national economic trajectory.
Eno who was represented by the state Commissioner of Information, Aniekan Umanah, identified some of the laws that have been enacted as a result of the reforms to include the Investment and Securities Act 2025, the Insurance Industry Reform Act 2025, the Nigerian Tax Act, 2025, and the deregulation of the electricity market,
The governor said the Akwa Ibom State government has already taken advantage of the policy in the power sector on the involvement of state governments in the management of the electricity infrastructure in the country by laying the groundwork that would facilitate its generation, transmission, and distribution of electricity in the state.
“It is through such deeper unbundling that subnational governments can truly serve the interests of their people, attract private capital, and accelerate industrialisation,” he said.
“This is a model of how subnational governments can complement the bold efforts of President, Asiwaju Bola Ahmed Tinubu in building a $1 trillion economy by 2030 under the Renewed Hope Agenda.
“The stage is set for the journey to an investment destination in Nigeria that offers limitless opportunities in an investor-friendly environment. The time to come to Akwa Ibom is now and we welcome you to come, live and invest in Akwa Ibom State,” the governor added.
Urging other state governments to take advantage of the reforms and drive productivity, innovation, and local enterprise, Eno said however that there must be a synergy between policy and people, fiscal reform and financial education, the boardroom and the marketplace to achieve this agenda.
In her introductory remarks, the convener of the investment forum, Mrs. Nancy Nnaji, said the event was conceived not only to deepen understanding of the issues underlining the reforms in the economy, but to empower Nigerians with actionable knowledge, inspire collaboration across sectors, and promote responsible investment practices that would secure both individual and national prosperity.
“This forum, therefore, is more than a gathering; it is a strategic conversation about Nigeria’s rewritten financial landscape, one that has been reshaped by fiscal and monetary reforms, new regulatory directions, and evolving market realities.
“It provides an opportunity to understand the implications of these changes, assess the emerging risks, and identify the pathways that lead to inclusive and sustainable wealth creation,” she said.
Mrs Nnaji urged Nigerians to eschew patronizing the Ponzi schemes, lamenting that about 60 million people recorded losses running into several billions in one form of pyramid investment, betting or the other schemes in recent times.
She enjoined investors to be financially active in Patronizing regulated investment schemes where their funds would guaranteed to help create real wealth.
Forum was co-hosted Golden Aura Limited, producers of Moneyline with Nancy on the African Independent Television (AIT).
