Nathan Drake

𝐒𝐞𝐭𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐞𝐜𝐨𝐫𝐝 𝐒𝐭𝐫𝐚𝐢𝐠𝐡𝐭 𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱 – 𝐓𝐚𝐢𝐰𝐨 𝐎𝐲𝐞𝐝𝐞𝐥𝐞 Public debate is vital for reform. But debate must be anchored on facts, not misrepresentation. Recent reports by Nairametrics and BusinessDay on Nigeria’s capital gains tax (CGT) reform mischaracterised both the policy and my engagements with key stakeholders. Given their reach and credibility, it is important to set the record straight.  1. 𝐎𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐒𝐞𝐧𝐭𝐢𝐦𝐞𝐧𝐭 𝐂𝐥𝐚𝐢𝐦: (Nairametrics): Foreign investors were frustrated with Taiwo Oyedele. The mood on the call was one of “palpable disappointment and unease.” 𝐅𝐚𝐜𝐭: A total of 281 participants attended the call from more than 10 countries. Contrary to claims of “frustration” and “unease,” about 80% of participants who gave feedback after the event rated the engagement 9 or 10 out of 10, with an overall average of 8.6. From the comments, many wished we had more time – certainly not the expected reaction of frustrated investors.  2. 𝐎𝐧 𝐈𝐝𝐞𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐋𝐚𝐛𝐞𝐥𝐬 𝐂𝐥𝐚𝐢𝐦: Oyedele’s tone was “ideological,” described as “socialist” for saying that the bottom 97% cannot pay tax and the government should focus on the top 3%. 𝐅𝐚𝐜𝐭: My statement was in the context of low income earners and nano businesses. Exempting the poor while taxing the wealthy fairly is not socialism; it is progressive taxation, a principle embedded in virtually every advanced economy.  3. 𝐎𝐧 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬 𝐂𝐥𝐚𝐢𝐦: Oyedele’s remarks on the CGT send troubling signals about Nigeria’s competitiveness and predictability. 𝐅𝐚𝐜𝐭: Competitiveness is not defined by the absence of CGT. The most advanced capital markets - the U.S., U.K., South Africa, among others - apply CGT and remain attractive to investors while many countries with no CGT lack robust capital markets altogether. Competitiveness depends on overall returns and risk factors, not on the absence of CGT.  4. 𝐎𝐧 𝐓𝐚𝐱 𝐉𝐮𝐫𝐢𝐬𝐝𝐢𝐜𝐭𝐢𝐨𝐧𝐬 𝐂𝐥𝐚𝐢𝐦: Oyedele inaccurately argued that foreign portfolio investors (FPIs) would pay equivalent taxes in their home countries even if Nigeria did not collect CGT. 𝐅𝐚𝐜𝐭: In reality, nearly all investors are taxable in their home countries and, where they are not, it is only fair that the source country collects its fair share of tax. A simple fact-check would have clarified this. See here taxsummaries.pwc.com/quick-c…  5. 𝐎𝐧 𝐀𝐧𝐨𝐧𝐲𝐦𝐨𝐮𝐬 𝐒𝐥𝐮𝐫𝐬 𝐚𝐧𝐝 𝐔𝐧𝐩𝐫𝐢𝐧𝐭𝐚𝐛𝐥𝐞 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐬 𝐂𝐥𝐚𝐢𝐦: An unnamed “Africa-focused fund” described Oyedele’s position as “mostly BS.” 𝐅𝐚𝐜𝐭: Beyond the unprofessional language quoted anonymously, which lowers the standard of professional journalism, the claim portrays ignorance. The top African capital markets - South Africa, Morocco, Botswana, Nigeria and Egypt - all apply tax on shares. Hopefully the “Africa-focused fund” has not been evading taxes across the continent.  6. 𝐎𝐧 𝐌𝐢𝐬𝐫𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐛𝐲 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐃𝐚𝐲 𝐂𝐥𝐚𝐢𝐦: A softened but largely similar publication by BusinessDay further claimed that Nigeria is “tripling CGT for foreign equity investors.  𝐅𝐚𝐜𝐭: This is false. Both local and foreign investors benefit from exemptions based on thresholds and reinvestment. Tax applies only where those thresholds are exceeded without reinvestment. Labelling this as a punitive tax on foreign investors is misleading.  𝐓𝐡𝐞 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐌𝐞𝐝𝐢𝐚 It is troubling when reputable outlets amplify misinformation. Professional journalism demands diligence - independent verification of facts, avoidance of anonymous slurs, distinguishing between biased opinion and credible evidence for balanced reporting.   Since May 2023, investors in Nigeria’s capital market have earned average returns of over 100% even in US dollar terms (capital gains, dividends, currency appreciation). Expecting local and foreign investors who wish to exit to pay tax on their net gains is neither unusual nor hostile, it is tax equity.  𝐅𝐢𝐧𝐚𝐥 𝐖𝐨𝐫𝐝 I rarely respond to misinformation, especially from non-credible sources. But given the credibility of Nairametrics and BusinessDay, clarification is necessary. Intentional misreporting is not journalism; it is sabotage and careless reporting is negligence.   While ensuring progressivity and equity across board beyond CGT, the tax reform addresses a myriad of tax issues plaguing the capital market. This is an opportunity to attract more investments into the market especially by retail investors away from gambling and virtual assets trading that today attract more interest from Nigerians than the capital market.  Along with my team, I remain focused on the national assignment I have been entrusted with: contributing modestly but firmly to reforms that strengthen Nigeria’s economy and promote fairness. I urge the media to play its part responsibly - to interrogate rather than sensationalise, and to inform, not mislead. Visit fiscalreforms.ng for more information on the reforms. 𝘐 𝘵𝘩𝘢𝘯𝘬 𝘺𝘰𝘶 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘢𝘵𝘵𝘦𝘯𝘵𝘪𝘰𝘯 𝘵𝘰 𝘵𝘩𝘪𝘴 𝘮𝘢𝘵𝘵𝘦𝘳😀