Nigeria’s capital market has surged past ₦125 trillion in market capitalisation, driven largely by ongoing fiscal reforms designed to strengthen investor confidence and stabilise the economy, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said.
Speaking at the 3rd PUU Capital Market Colloquium in Abuja on Monday, Oyedele described the reforms as one of the most consequential fiscal resets in Nigeria’s modern history, aimed at fostering investment-friendly conditions, building trust, and stimulating inclusive economic growth.
“Confidence continues to grow from both foreign and domestic investors, driven by structural reforms and strong performance in key sectors like energy, industrial, and financial services,” Oyedele said, noting that the All-Share Index had delivered a 25.3% return in the first seven weeks of 2026, with market capitalisation crossing ₦100 trillion in January and surpassing ₦125 trillion by February 20.
He explained that Nigeria’s previously fragmented tax system discouraged investment and hindered efficient capital allocation. The new tax framework offers a unified, transparent, and predictable environment, with measures including:
Full Capital Gains Tax exemption on proceeds reinvested in Nigerian shares within the same year.
Higher tax-exempt thresholds for small and retail investors.
Reduction of corporate income tax from 30% to 25%.
Removal or reduction of certain transaction taxes, such as stamp duties on share transfers and withholding tax on bonus shares.
Protection for foreign investors from taxation on naira gains without accounting for FX losses.
“These steps will eliminate tax drag, encourage portfolio rebalancing, boost market liquidity, and incentivise patient capital, ultimately translating financial market growth into tangible economic development, including infrastructure, factories, innovation, and job creation,” Oyedele added.
Also speaking at the event, Uche Uwaleke, Professor of Capital Market at Nasarawa State University, highlighted the need for Africa-wide economic integration supported by infrastructure, innovation, and deep capital markets.
“Infrastructure is the first pillar of this future. Trade agreements without roads, railways, ports, energy systems, and digital connectivity are aspirations without arteries. For Africa to trade efficiently, goods must move seamlessly, power must be reliable, and broadband must be accessible,” Uwaleke said.
He added that policy consistency, macroeconomic stability, and credible institutions are critical to sustaining investor confidence, calling for stronger cross-border regulatory cooperation, interoperable settlement systems, and mobilization of domestic savings toward productive investments.
The event underscored the importance of combining structural fiscal reforms with strategic investment in infrastructure and capital market development to position Nigeria and Africa for long-term economic growth.
