Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed recent media claims alleging that foreign investors expressed dissatisfaction with the Federal Government’s Nigeria tax reform agenda.
Oyedele described the reports as “gross misrepresentations” of facts and outcomes from a recent investor engagement session, noting that the reforms were designed to make Nigeria’s fiscal system fairer, more transparent, and globally competitive — not to discourage investors.
In a statement released via his official X handle on Monday, the fiscal expert clarified the circumstances surrounding the investor forum hosted by Standard Chartered Bank.
The virtual meeting was organized to clarify details of the revised Capital Gains Tax (CGT) provisions under Nigeria’s ongoing tax policy reforms.
Investor Response Misrepresented
According to Oyedele, contrary to the reports of frustration, the feedback from the investor call indicated strong interest and optimism.
“A total of 281 participants joined the call from over ten countries, and 80 percent rated the session 9 or 10 out of 10, with an average rating of 8.6,” he revealed.
He explained that the participants appreciated the transparency and depth of the discussions, with many expressing a desire for more engagement sessions.
“Those are certainly not the reactions of a frustrated audience,” Oyedele remarked, adding that such interactions were vital for building confidence around the ongoing Nigeria tax reform.
The chairman emphasised that while public debate and criticism are welcome, they must be grounded in facts rather than assumptions or sensationalism.
“Reform debates are healthy for democracy and governance, but they must be anchored on truth, not distortion,” he said.
Clarifying the Capital Gains Tax Policy
Addressing widespread concerns, Oyedele said fears that the new capital gains tax regime would make Nigeria less competitive were misplaced.
He explained that major economies such as the United States, the United Kingdom, and South Africa all implement capital gains taxes without losing investor confidence.
“Competitiveness is not about the absence of capital gains tax,” he noted. “It depends on returns and risks.
When investors evaluate opportunities, they consider policy consistency, profitability, and long-term sustainability — and these are the principles the current Nigeria tax reform seeks to strengthen.”
He further clarified that both local and foreign investors enjoy exemptions under certain investment thresholds, especially where gains are reinvested.
“Tax applies only when profits exceed the exemption threshold without reinvestment. It is inaccurate to label this as a punitive measure targeting foreign investors,” Oyedele said.
Progressive Taxation, Not Socialism
In reaction to critics who accused him of promoting socialist ideas, the committee chairman stated that his call for fairer taxation of the wealthy aligns with globally accepted principles of progressive taxation.
“Exempting the poor while taxing high-net-worth individuals fairly is not socialism; it is responsible fiscal management,” he explained.
“Every advanced economy applies progressive taxation to reduce inequality and fund essential public services.”
He added that Nigeria’s tax reform aims to broaden the revenue base while protecting low-income earners, ensuring that those with greater capacity to contribute do so in a transparent, equitable system.
Reform Rooted in Fairness and Growth
Oyedele emphasized that the broader goal of the Nigeria tax reform is to promote fairness, encourage compliance, and support economic diversification. According to him, the ongoing policy overhaul will make Nigeria’s tax system simpler, more efficient, and business-friendly.
“Since May 2023, investors in Nigeria’s capital market have recorded average returns of over 100 percent in dollar terms,” he disclosed.
“This performance — driven by capital gains, dividends, and currency appreciation — clearly contradicts the narrative that our fiscal reforms are chasing investors away.”
He also highlighted that the reforms are part of a larger fiscal framework that seeks to reduce Nigeria’s dependency on volatile oil revenue and strengthen non-oil revenue streams through productive investments.
“The intent is to attract capital into manufacturing, agriculture, and technology, not to discourage foreign direct investment,” he said.
“We want to shift focus from speculative activities like gambling and unregulated virtual trading to sustainable economic activities.”
Call for Responsible Reporting
Oyedele cautioned against “intentional misreporting” of reform-related developments, urging media professionals to verify information before publication.
“Our economy benefits when we encourage informed dialogue, not sensational narratives. We must all play a role in building investor confidence through factual reporting,” he advised.
He reaffirmed the government’s commitment to continuous stakeholder engagement, saying that policy transparency remains central to the success of the Nigeria tax reform.
“We will keep engaging the public, investors, and the private sector to ensure clarity and trust in the reform process,” Oyedele assured.
As the Federal Government intensifies fiscal modernization, Oyedele expressed optimism that the tax reform would lay a foundation for long-term macroeconomic stability.
“Our goal is to build a fiscal system that rewards productivity, promotes fairness, and positions Nigeria as Africa’s most attractive investment destination,” he concluded.
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