Market recovers as FG clarifies stance on capital gains tax, investors gain over N1trn
The Nigerian stock market extended its rebound on Thursday as investors responded positively to assurances from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on the government’s position regarding Capital Gains Tax (CGT) in the capital market.
The clarification helped restore confidence following Tuesday’s sharp decline, triggering renewed optimism among institutional and retail investors. Additional reassurances shared on X by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, further strengthened sentiment, as he explained that the policy review was aimed at fairness and sustainable market growth not restricting activity.
The market’s recovery was reflected in strong performance numbers. On Wednesday, the All-Share Index surged by 2.88%, pushing the year-to-date return to 41.27%, while market capitalization rose by N2.6 trillion to N92.48 trillion from N89.88 trillion. The positive momentum continued on Thursday, with investors gaining over N1.003 trillion as market capitalization climbed to N93.480 trillion from N92.477 trillion.
Reacting to the rebound, Temi Popoola, GMD/CEO of NGX Group, said the renewed momentum showed strengthened confidence in the market and the impact of improved policy communication. He added that alignment between fiscal direction and market realities remained key to sustainable growth and liquidity.
Similarly, Jude Chiemeka, CEO of Nigerian Exchange Limited (NGX), said Thursday’s performance reflected the strength and responsiveness of Nigeria’s market infrastructure. He noted that the surge in participation signaled restored investor appetite and trust in market transparency.
The gains come after a week of profit-taking and macroeconomic uncertainty, with the swift recovery reinforcing the resilience of the Nigerian capital market and its sensitivity to policy clarity.
