Uncertainty over Nigeria’s capital gains tax is emerging as a major concern for offshore investors, threatening to undermine improved sentiment towards the country’s economic reforms, according to Cordros Securities.
The investment firm said foreign fund managers it met during a recent weeklong engagement were significantly more positive about Nigeria than they were in 2023, but raised concerns about the lack of clarity surrounding the administration of the capital gains tax.
“The issue is no longer about whether it was the right thing or at the right time,” Cordros said in a market note on Wednesday.
“It is now about both the lack of communication since the tax became effective this year and the opacity around its implementation.”
Africa’s most populous country has tripled its capital gains tax from 10 percent to 30 percent, following a major tax overhaul that came into effect on the 1st of January, 2026.
