As part of a new tax law aimed at increase government revenue and deepen reinvestment Nationally, Nigeria will increase the capital gains tax (CGT) for foreign investors in local shares from 10% to 30% starting at January 2026.

The higher tax will not apply to investors who reinvest their earnings in other Nigerian securities, whether listed or not, the finance ministry said.

This measure comes while the actions Nigerians have increased by 40% this year, driven by President Bola Tinubu's market reforms - in particular the abolition of fuel subsidies, the liberalization of the naira and the tightening monetary - which have generated renewed interest from investors.

Analysts, however, warn that the rise taxes could lead to profit-taking before the end of the year, which could affect liquidity and market sentiment.

According to the Nigerian Exchange Group, foreign investors represented 21% of the total transactions, i.e. 1.45 trillion euros (1 billion dollars), during of the first eight months of 2025.

Nigeria's decision to tripling the capital gains tax for foreign investors marks a radical change in policy that could test the resistance of the stock market. Although designed to encourage capital retention and broadening the tax base, the 30% levy could erode appetite foreign investors at the same time as Nigeria seeks to restore its credibility in global markets.