Good News As FG Confirms Plans To Reduce CGT, CIT in 2026
- The federal government has announced plans to review the new 30% Capital Gains Tax down to 25% by 2026
- Tax reform committee chairman Taiwo Oyedele said that corporate income tax is also expected to drop
- There are more relief for business through full VAT input credits on assets, overheads and services
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms has announced ongoing plans to review the newly approved Capital Gains Tax (CGT) rate from 30% rate down to at least 25% in 2026.
Source: Twitter
He disclosed this while speaking at Tax Matters Unplugged, a Stanbic IBTC event held on Wednesday, November 27.
According to Oyedele said the adjustment would ensure a fairer system for both local and foreign investors.
He said:
“There’s a plan to reduce that to 25%, which means eventually it will be taxed at 25% for the exit. And this rule applies to everyone. So there is no distinction between your foreign investor or your local investor".
Under the Nigeria Tax Act 2025, the CGT rate is scheduled to rise from 10% to 30% effective January 1, 2026, a move that triggered concerns across the equities market.
The tax applies to profits from the sale of shares or other equity instruments, ensuring investors who profit from market gains contribute to public revenue.
Tax relief for business
Oyedele also revealed plans to cut the corporate income tax rate from 30% to 25% by 2026.\
He said.
“We initially proposed a 25% CIT review in the law, but the governors rejected it. So we included it later, subject to approval from the National Economic Council (NEC).”
Source: Twitter
The committee has already written to the NEC and expects the issue to be resolved before the finalisation of tax laws in December or early 2026.
Another key reform in the new tax act is the expansion of VAT input credits.
For the first time since VAT was introduced in Nigeria, businesses will be able to claim input VAT on assets, overheads, and services a shift expected to significantly reduce operating costs.
Oyedele explained that the reduction will boost profitability for both listed and unlisted companies.
He noted that the combined impact of a lower corporate tax rate and full VAT input credits amounts to about N5.4 trillion (approximately $3.5 billion), representing 60–70% of current corporate tax revenue, BusinessDay reports.
He said:
“This measure is designed as a boost for businesses starting next year, helping them preserve cash flow on one hand.”
FG clarifies 5 false claims on new tax law
Earlier, Legit.ng reported that the federal government has clarified that the new tax reforms taking effect in January 2026 will reduce, not increase, the tax burden for most Nigerians.
Taiwo Oyedele noted that, contrary to some reports suggesting new taxes are coming, individuals, small businesses, and large corporations stand to benefit under the revised laws.
He explained that individuals in the bottom 98% of income earners will pay less or no tax, while VAT on essential items such as food, education, and healthcare will be removed, lowering the cost of living.
Source: Legit.ng
