FG, SEC, NGX Group Align On CGT Reform As Government Sets A Calmer Path For Implementation

For months, the capital market had braced for turbulence. The new capital-gains-tax (CGT) provisions carried the weight of uncertainty, and operators worried about the impact of a sudden rollout. Liquidity could thin out. Sentiment could wobble. Hard-won investor confidence could take a hit.
Now, a different mood is emerging. The federal government has inaugurated the National Tax Policy Implementation Committee (NTPIC), signalling a firmer, steadier and more predictable approach to the reform. It is a clear shift from speed to sequence, and from policy pronouncements to technical grounding.

What changed

The shift didn’t happen in a vacuum. It followed weeks of deep engagement between policymakers and two of the market’s most influential institutions, the Securities and Exchange Commission (SEC) and Nigerian Exchange (NGX) Group. Market operators had presented a simple argument: reform is necessary, but misalignment can hurt the same markets the government depends on for capital formation and long-term investment.

At the inauguration, the tone was unmistakable. Mr. Joseph Tegbe, the fiscal-policy expert appointed to chair the committee, stressed that implementation would not be rushed into the market without safeguards.

“Implementation of the new tax laws will be fair, transparent and humane,” he said. He also stated that the government would not adopt any approach that could distort market activity or undermine business confidence. For him, stakeholder engagement is not a formality, it is the backbone of execution.

Why it matters

The capital market has been navigating a sensitive moment, with Nigeria seeking fresh inflows at home and abroad. Operators warned that a rapid introduction of CGT could drain liquidity and weaken Nigeria’s competitive position.
Mr. Temi Popoola, GMD/CEO of NGX Group, welcomed the government’s shift to a more calibrated path. He noted that NGX and SEC had consistently advocated for a data-driven framework that preserves market depth while achieving the government’s fiscal goals.

“We support the modernisation of Nigeria’s tax system, but reforms of this scale must be carefully calibrated to protect liquidity, sustain participation and maintain competitiveness,” he said. For Mr. Popoola, global competitiveness is not only about policy intent. It is about precision; the sort that gives emerging markets a fighting chance in attracting cross-border flows.

A turning point

The government’s posture changed significantly after Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, visited NGX Group. Market operators laid out the unintended consequences of an abrupt execution. Experts described how liquidity could thin out and how investor behaviour could shift in ways that weaken the recovery Nigeria is trying to build.

The inauguration of the NTPIC is now being read by analysts as more than a procedural step. It is a signal, one that shows reforms will be anchored on evidence, consultation and stability, not speed for its own sake.

What to expect

The committee’s mandate is broad and clear. It must deliver transparent guidelines, hold extensive consultations and design an execution model that avoids shocks. The goal is to protect investors while aligning with the country’s fiscal strategy.

Both SEC and NGX Group have pledged full cooperation with the committee. Their focus is to ensure that the final CGT framework strengthens confidence, supports participation and contributes to the long-term development of Nigeria’s capital market.

The market now waits for the next steps. But the direction is clear. After months of uncertainty, the government, regulators and operators appear to be moving in one direction, a more deliberate, predictable and market-aligned path for tax reform.