The planned increase in Capital Gains Tax (CGT) on share sales above N150 million as provided in the Nigerian Tax Act billed for operation in 2026 triggered panic sale off stock that caused N2 trillion loss in market capitalization within one week, Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, said.

While conceding that taxation is vital for revenue generation, he said fiscal measures must not erode investor confidence or discourage long-term capital formation.

He spoke yesterday in Abuja at 2025 Moneyline with Nancy Investment Forum. The forum is themed: Nigeria’s New Financial Landscape: Reforms, Risks, and the Road to Wealth Creation.” Izunaso urged the Minister of Finance to review the policy and adopt a more balanced approach to protect market stability. He commended President Bola Ahmed Tinubu’s administration for stabilizing the economy and rebuilding investor trust since 2023.

He said Nigeria’s capital market entered a new era of reform with the introduction of the Investment and Securities Act (ISA) 2025, a landmark legislation aimed at strengthening regulation, enhancing transparency, and attracting global investment. Izunaso said the Act strengthened the powers of the Securities and Exchange Commission to monitor market activities proactively, detect systemic risks early, and enforce compliance more effectively.

Senator Izunaso further explained that the legislative vision behind ISA 2025 transcends regulation—it aims to make the capital market a driver of inclusive economic growth. Izumaso described ISA 2025 as a “forward-looking framework” that reinforces market oversight while safeguarding investors’ interests.

He explained that the new law establishes stricter disclosure requirements, higher corporate governance standards, and easier complaint redress mechanisms—elements crucial for rebuilding investor confidence.